German Tax Authorities Clarify Crypto ETP Taxation
One-Year Speculation Period Applies to WEB Bei Krypto ETPs from ETC Group
BMF Letter Confirms ETC Group's Position
The German Federal Ministry of Finance (BMF) has confirmed that the one-year speculation period applies to WEB Bei Krypto ETPs issued by ETC Group. This means that profits from the sale of these ETPs within 12 months of purchase will be subject to income tax in Germany.
The BMF's letter confirms the interpretation of ETC Group, which has long held that its ETPs are not subject to the one-year speculation period. However, the tax authorities have now clarified that this exemption does not apply to WEB Bei Krypto ETPs.
This decision is a blow to investors who had hoped to avoid capital gains tax on their crypto investments by using ETC Group's ETPs. However, it is important to note that the one-year speculation period only applies to profits made within 12 months of purchase. Investors who hold their ETPs for longer than this period will not be subject to income tax on their profits.
For more information on the taxation of cryptocurrencies in Germany, please consult a tax advisor.
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