Denmark is set to introduce new tax regulations that could have significant implications for cryptocurrency investors by 2026. The Danish Tax Law Council has proposed taxing unrealized gains and losses on crypto assets, meaning that investors may be required to pay taxes based on the current value of their holdings, even if they have not sold them.
In a comprehensive 93-page report, the Council presented three potential models for taxing cryptocurrencies: capital gains tax, warehouse taxation, and inventory taxation. The “inventory taxation” model, which appears to be the preferred option, would treat an investor’s entire cryptocurrency portfolio as a single “inventory,” imposing yearly taxes regardless of whether the assets are sold.
Danish Tax Minister Rasmus Stoklund commented that the existing tax framework often disadvantages crypto investors, and the proposed changes aim to streamline the taxation process. However, it is important to note that these suggestions are currently recommendations and have not yet been enacted into law.
Additionally, the proposal includes a requirement for crypto service providers, such as exchanges, to report user transactions, which would be accessible to all EU countries. Stoklund indicated that the Danish Parliament is expected to discuss the proposed legislation in 2025, with an earliest possible implementation date set for January 2026.
This initiative aligns with similar tax efforts globally. In the United States, Vice President Kamala Harris has endorsed a tax on unsold assets, while Italy is exploring increases in taxes on Bitcoin holdings.
If approved, Denmark’s new tax rules could profoundly affect crypto investors, eliciting negative reactions from the crypto community, which views this measure as a punitive action against the sector.
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