The Federal govt Agency of Germany issued its crypto-friendly tax provision for the citizens.
Germany is a crypto-friendly region to a better extent in this world and now it is moving toward more friendly laws for the crypto Investors. Germany’s laws are very strict on the crypto companies and Investors, as a way to provide safety to the citizens and financial economy. At present no one person is allowed to use cryptocurrencies in the trade of goods & services, which means citizens are prohibited to use cryptocurrencies as legal tender.
Just a couple of days ago, Germany’s federal finance ministry (BMF) published its 24-page document, which includes many types of provisions to keep the issues of cryptocurrencies away.
The most interesting thing in the document is the tax-free law on the crypto Investors. All the individual crypto investors in Germany will not be required to pay any tax if they will hold their crypto assets for more than 1 year.
Katja Hessel, German Parliamentary State Secretary, also stated on this matter and said that law will also be applicable on crypto-assets staking and lending Defi protocols and also for the forked coins.
Earlier, the same provision was available for the crypto Investors but the time frame was 10 years, which was a big issue for the people, who were looking to hold cryptocurrencies for a few years.
Long term holding & Tax-free: A good idea
However citizens are allowed to buy & sell digital assets at any time but they are required to pay tax under the provision. But with the new rule the majority of the people will try to avoid short-term buy and sell decisions. And probably in the long term people will get better results.
At present, the majority of the Countries are using crypto tax policies to keep citizens away from this industry. In particular, the Indian finance ministry imposed a 30% tax on income generated from crypto trading, which can’t be compensated for the loss in other trades.