Denmark Tax Agency Clarifies Tax Treatment of Profits From Trading in Digital Currencies

The Danish Customs and Tax Administration Oct. 6 posted online National Tax Court Decision No. SKM2023.479.LSR, on the tax treatment of profits from trading in digital currencies. The taxpayer received 25 Bitcoin from their significant other as a gold-plated physical coin, and sold 21 after a few years. The Tax Agency found that the gain was subject to individual income tax and assumed that the currency wasn’t acquired as a gift due to lack of gift documentation. On review, the National Tax Court upheld the Tax Agency’s decision, finding that: 1) it was probable that the taxpayer received the physical ...