Denmark’s Supreme Court: Bitcoin Sales Are Taxable

The Danish Supreme Court has ruled that profits from the sale of Bitcoin are subject to taxation, affirming a prior decision by the Danish High Court.

This includes both entities that purchase Bitcoin from a third party and miners who are rewarded in Bitcoin for their work in securing the network.

The Court has determined that the first instance of Bitcoin purchase was speculative, and thus any earnings should be taxed according to the State Tax Act.

Additionally, the Court held that miners acquiring Bitcoin through mining constituted revenue, meaning that any sales of Bitcoin would be taxable.

In 2018, it was reported that over 2,700 individuals in Denmark had failed to pay taxes on profits from Bitcoin sales, amounting to around 8 million dollars in total.