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. SKM2023.480.LSR, explaining the tax treatment of profits arising from trading in digital currencies. The taxpayer acquired and later sold digital currency, and then failed to report the income received from the sale. The tax agency found that the income arising from the sale was subject to personal income tax, because the taxpayer acquired the currency at least partly for speculative purposes. On appeal, the National Tax Court upheld the tax agency’s decision and found that: 1) the taxpayer failed to document the acquisition sums upon ...