Denmark proposes taxing unrealized crypto gains as it does with some traditional financial contracts
Denmark is proposing a new taxation model that would tax unrealized gains on cryptocurrencies at 42%, aligning digital assets with existing rules for certain financial contracts.
This approach involves calculating gains and losses annually based on the change in the value of the taxpayer’s holdings, regardless of whether the assets have been sold. The taxable income would reflect the difference between the value at the start and end of the year.
Under this inventory-based taxation system, gains would be included as capital income, while losses could be deducted from gains in the same category within the same year. Unused losses could be carried forward to offset future gains. This method aims to provide a consistent framework for…
