Austria MOF Clarifies Taxation of Benefits Received in Connection With Cryptocurrency Mining Participation Models

The Austrian Federal Ministry of Finance May 11 posted online Federal Finance Court Decision No. RV/5101059/2021, clarifying the taxation of benefits received in connection with cryptocurrency mining participation models. The taxpayer, an individual, invested in a profit participation right linked to a managed hosting mining package and received a voucher. The Tax Office treated the voucher as taxable capital income and assessed income tax accordingly. On appeal, the Federal Finance Court found that: 1) the profit participation right was structured as a debt-like instrument lacking equity characteristics, giving rise to income from capital assets; 2) the voucher was inseparably linked ...