Tax return
Crypto tax return: do I have to submit one?
Crypto tax return - An overview from the experts at Kryptoanwalt.de
Crypto tax return: do I have to submit one?
With the increasing popularity of cryptocurrencies, the question of tax obligations is also becoming more and more relevant. Many investors are wondering whether they need to submit a tax return for their crypto assets. This article explains the basic aspects of crypto tax returns and shows which framework conditions need to be observed.
Who has to submit a crypto tax return?
In Germany, profits from trading in cryptocurrencies are subject to tax. This primarily applies to private investors who buy and later sell cryptocurrencies. However, there are some factors that determine whether a tax return is required:
1. sale of cryptocurrencies
If you sell or exchange cryptocurrencies or use them for goods and services, this is considered a sale. If the profit from these transactions reaches a certain amount, you must submit a tax return.
2. speculation period
Profits from the sale of cryptocurrencies are taxable if the speculation period of one year is not exceeded. If you hold your cryptocurrencies for longer than one year, the gains are tax-free.
3. tax-free amount
In Germany, there is a tax-free allowance of 1,000 euros per year for profits from the sale of cryptocurrencies for private investors. If your profits do not exceed this amount, you do not have to submit a tax return.
Procedure for the crypto tax return
Documentation
Keep precise records of your purchases, sales and exchanges of cryptocurrencies. This includes the date, amount, purchase and sale price and fees. This documentation is crucial for calculating profits and for your tax return.
Calculation of profits
To calculate your taxable profits, deduct the acquisition costs of the cryptocurrencies sold from the sales proceeds. Also take into account the speculation period and the tax-free allowance.
Form completion
The information obtained must be entered in the standard tax return, usually in Annex SO (Other Income). Tax returns can be submitted online via ELSTER or in paper form to the relevant tax office.
Adhere to deadlines
Make sure you adhere to the specific deadlines for submitting your tax return. In Germany, tax returns for the previous year generally have to be submitted by July 31 of the following year.
Conclusion
Filing a crypto tax return is mandatory for many investors in Germany, especially if profits are made from trading cryptocurrencies. By accurately documenting trading activities and taking into account the tax framework, investors can clearly meet their obligations. In order to avoid potential mistakes and take advantage of all tax optimization opportunities, it can be helpful to consult our crypto lawyers who specialize in cryptocurrencies. This way, you can ensure that they take all relevant information and obligations into account correctly.
This information serves as a general guideline and cannot replace individual tax advice from our experts. The tax treatment may vary depending on your specific situation and the current tax regulations. It is strongly recommended that you contact our lawyers to clarify your personal tax situation and comply with the legal requirements.