Denmark’s Task Agency will soon have wider coverage of country’s cryptocurrency trading data. An official release disclosed that the Tax Council have permitted ‘Skattestyrelsen (SKAT), the Tax Agency of Denmark’ to obtain information on Bitcoin and other crypto trading data ‘for the period 2016-2018.
Skattestyrelsen (SKAT), country’s tax agency is targeting three cryptocurrency exchanges of Denmark to collect information on customer’s cryptocurrency trading between Jan 01, 2016 to Dec 31, 2018. Accordingly, they’re in contract with respective exchanges to precede the matter. Besides their trading activities, crypto exchanges are expected to provide other key information of customers to the tax agency such as their names, addresses, CPR numbers, CVR information. By doing so, the Tax agency is expecting to assess the right taxpaying status of customers.
Moreover, the statement reads that foreign customers whose crypto transaction details are available at Danish cryptocurrency exchanges will be exchanging with their respective country’s authority. Karin Bergen, tax director of the agency said that;
With the permission of the Danish Tax Council, we will for the first time gain access to the trades made via the Danish stock exchanges. This gives us completely new opportunities in relation to control in the area
Further, Karin is exciting with the wider scope of cryptocurrency market, she continuing that;
Without going too far, I think you can say that this is a big market that we need to look into.
Regulators across various countries are closely looking into tax assessment on crypto trading and as such by obtaining permission from Tax council, Denmark’s Tax Agency for the first time will ensure whether ‘citizens who have traded cryptocurrency paid the right tax’.
Back in March 2014, Denmark’s top tax authority has decided that ‘no profit on cryptocurrency tradings’ will be counted for tax. Accordingly, the authorities have discussed ‘Bitcoin gains are exempted from getting taxed by the Danish government’. And then back in late December 2018, Skattestyrelsen (SKAT) come into the light ‘by investigating 2700 Danes who were secretly trading Bitcoin at a Finnish crypto exchange ‘. Meantime, it has also revealed by ‘Payam Samarghandi who is a lawyer and Bitcoin expert in Denmark that the Tax authorities are considering ‘Bitcoin as a taxable asset’.
What do you think of tax calculations on cryptocurrency trading? What’s your stake on Denmark’s initiatives?