Global Daily Tax News, Denmark To Amend Cryptoasset Tax Rules, (Oct 28, 2024)

Legislation is to be tabled in Denmark in early 2025 to overhaul the tax rules that apply to crypto-assets.

The legislation would implement recommendations from the Law Council, affecting about 300,000 Danes who own crypto-assets.

The Law Council has newly released its report on the tax rules for crypto-assets, having commenced a review starting 2021.

It has proposed that all crypto-assets should in future be taxed according to the same rules: "non-backed crypto-assets", such as Bitcoin, would be taxed in the same way as other types of investments, based on holdings rather than tax liability arising only upon divestment.

Tax Minister Rasmus Stoklund said the proposals would lead to more reasonable taxation of crypto investors' gains and losses.

The Danish tax agency said, under the changes, investors would be able to deduct losses against gains on other crypto-assets. In addition, the recommendations would make it possible to offset gains on cryptoassets against losses on financial contracts, and vice versa.

In addition, at the beginning of 2025, the Minister of Taxation will present a bill that will require providers of crypto-asset services to report information about their customers' transactions in crypto-assets, with a view to the information being subsequently exchanged between EU countries.

The Tax Law Council has recommended that the changes should take effect from January 1, 2026.