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Tax Optimization (EU)


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Has any EU resident here already inquired with a lawyer regarding tax optimization possibilities? I am talking about legal ways how to minimize the tax you pay from your profits from selling cryptocurrencies / XRP.

Have you received any relevant information you may share here or send via a private message?

Any relevant information would be very much appreciated.

 

 

Edited by Guest
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I've contacted the company that does my tax returns here in Germany and i was literally surprised with the feedback. Especially if you are a HODLER.

In Germany ( and Austria) , you don't have to pay any taxes on cryptocurrency if you do not sell or exchange ( example: from XRP to BTC or XRP to FIAT ) for 1 year from buying date. They apply the FIFO ( First in, first out) rule on it. Keep in mind that you still have to declare buying cryptocurrency once you do your tax returns and if you sell or exchange below the one year threshold , you'll pay 25% income tax on the gains.

 

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Every country has its own fiscal policy. Studied Fiscal Economics (EUR, Rotterdam) and I can tell you this crypto is taxable. 

For instance in the Netherlands crypto will fall under income tax. Yeah weird, returns on investments is not an 'income', it is capital gains.
We Dutchies have odd income tax system with 3 boxes. Crypto belongs in box 3, this is a tax on savings and investments (tax on capital gains). So it is a disguised tax on capital gains (vermogensbelasting). 

Anyway crypto belongs in box 3 in the Netherlands, so on  first of Jan each year you report the amount of capital you have in box 3. 

So you get all capital and crypto value - 25k (exempted)  * agreed up on rate of return of investment (yea weird system, you can have  returns of investements of 1000% and you only pay 4% * the tax rate of 30% :)

edit: Chance of getting caught with cryptos in cold storage? low i guess 

edit2: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/wat_zijn_uw_bezittingen_en_schulden/uw_bezittingen/overige_bezittingen/ 

 

Quote

bitcoins en andere virtuele betaalmiddelen
Virtuele betaalmiddelen, zoals bitcoins, staan op uw computer opgeslagen. U kunt deze alleen gebruiken als betaalmiddel op internet. U geeft van deze middelen de waarde in het economisch verkeer aan op 1 januari van het jaar van aangifte.

 

Google translate: bitcoins and other virtual payment instruments Virtual payment instruments, such as bitcoins, are stored on your computer. You can only use it as a payment method on the internet. You declare the value in economic transactions of these resources on 1 January of the year of declaration.

Edited by Catastrophi
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8 minutes ago, Coretex said:

I live just across the border and I think this time period was raised to 3 years here.

What if you do not declare the purchase during the year you made it, but only later given that you have the right evidence. Do you have any information on this?

There are two things you don't F... with:

Wu Tang Clan & German Tax Office ( Finanzamt). Not declaring expenses might not be such a big deal but withholding gained incomes is tax evasion and that's a pretty big deal here. I advise you to file your paperwork accordingly and HODL.

Edited by tzuvi
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1 minute ago, tzuvi said:

There are two things you don F... with:

Wu Tang Clan & German Tax Office ( Finanzamt). Not declaring expenses might not be such a big deal but withholding gained incomes is tax evasion and that's a pretty big deal here. I advise you to file your paperwork accordingly and HODL.

I am not planning to evade taxes. I am only interested in optimization.

I will talk to my friends in partnership of one of the Big 4 companies. Hopefully, they will have some tips.

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Has there been any cases between an individual or company re: gains that they have made when diposing of any Crypto ?  There must be a lot of arguements, for and against, for both sides as to what category it falls under.  Maybe, depending on the amount of Fiat being realised in any given year a Husband & Wife for example would have a CGT allowance and only pay CGT on the remainder for that year.  Is there a possibly that these allowances can be carried forward from the year in which you started accumulating the Crypto ?

One thing for certain though, the TaxMan in any jurisdiction won't make it easy and will look for as big of a slice as possible !

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For people that are already investing\gambling\speculating (whatever you want to call it).  Would any Rules, Laws etc. that are introduced now governing Tax affect them ?  Can any changes be applied to tranactions done prior to any such new Law being introduced ?

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1 hour ago, xh3b4sd said:

In Germany the holding period is 1 year. A friend of mine just checked back a few weeks ago. This ruling got introduced (again) in 2014 AFAIK. 

I guess the main question for most is actually here if this xx years (so germany i.e. 1 year) holding means really not touched your coins at all or if this time period just referring to "touching" the bank account. 

So lets say someone sent money from bank account 5 times between march 2017 and august 2017. 

Case 1

Coins were not traded/touched at all, this means I could after xx years of each payment withdraw this number of coints. Or I wait till the latest payment + xx years and withdraw all to bank account. So I guess that case is still quite straight forward.

Case 2

In the meantime some coins were traded/switched with other coins. So lets say the person traded 3-4 times end of 2017 now to get some gains during the rallies. This still means no activity on bank account, but does it mean now the person can do the same like in case 1 or is the latest "traded" for the xx years interval important?

If so how this would ever get to be checked even by only 3-4 trades, as not same amount of initial coins are there anymore and all values are totally different. So I dont see how this would be possible and rather think Case 1 applies?

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