The Danish high court has said that Bitcoin earnings can be taxed.
The Danish Supreme Court has said that selling Bitcoin carries a tax liability. He said that this responsibility applies to both traders and miners.
Decision from Danish Supreme Court on Bitcoin Earnings
The Danish Supreme Court upheld a previous ruling, ruling that profits from the sale of Bitcoin constitute a taxable event.
The Supreme Court considered two examples of profiting from Bitcoin. The first involved an organization buying Bitcoin from a third party, and the second involved miners earning Bitcoin as a reward for securing the network. The court ruled that if they sell cryptocurrencies, both parties will have tax liability.
For people in the first place, the court ruled that Bitcoin purchases are speculative in nature. Therefore, according to the Danish State Tax Code, their sales should not be tax-exempt.
The situation is the same with Bitcoin miners. The Supreme Court has ruled that buying Bitcoin through mining generates revenue and they should be taxed if they sell it.
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