Germany authorizes the use of cryptocurrencies

Germany authorizes the use of cryptocurrencies

This past Wednesday, February 28, the German Federal Ministry of Finance announced through its official website the guidelines for the use of cryptocurrencies inside the country.

On one hand, it mentions there will be a tax exemption when paying with cryptocurrencies:

“The use of so-called virtual currencies, like Bitcoin, is interpreted as a contractual instrument for direct payments between economic operators and for no other purpose than its use as a way of payment”, states the website.

By paying with Bitcoin, the service provider determines an equivalent rate to the local currency in which the transaction takes place, according to the article 91, 2nd paragraph of the German tax directive.

Also, the service from the mining community will be tax-free, this when we talk about the transaction rate applied to users, which is payed voluntarily.

However, there are other transactions that will be taxed, like:

  • E-wallets: In this case, fees or charges for storage services or transactions must be taxed by law.
  • Exchanges: The commercial nature of these platforms for services through electronic trading will tax the profits that the cryptocurrency Exchanges earn.

In a previous post on this blog, we discussed a report from Reuters about how the use of cryptocurrencies in every country must comply with its global nature.

 

By Omar Cortés

  • Lic. Omar Cortés

    Lic. Omar Cortés

    El Mtro. Omar Cortés cuenta con estudios de Licenciatura en Psicología y Grado Master en Administración de Recursos Humanos. Se especializó en Psicoterapia a través del enfoque de Carl G. Jung, además de Ética y Valores Humanos.

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