Denmark Tax Agency Clarifies Tax Implications of Trading, Earning Crypto-Assets

The Danish Customs and Tax Administration March 4 posted online Tax Council Binding Answer No. SKM2025.117.SR, clarifying the tax implications of trading and earning GALA tokens, which is a crypto-currency token. The taxpayer, an individual, sought confirmation on whether trading in GALA tokens shouldn’t be considered speculation, whether remuneration through GALA tokens for providing server power to the GALA universe was tax-free, and whether he had a deduction for expenses for providing server power and in his gaming winnings regarding expenses for purchasing Non-Fungible Tokens (NFTs). The Tax Council, in agreeing with the Tax Agency’s recommendations and justification, found that ...