Feeds

Bitcoin blitzkreig as Germans prepare to tax virtual currency

Berlin puts its towel on virtual sunlounger

The essential guide to IT transformation

Germany has become the first country to recognise Bitcoin as a real form of currency, which will be subject to tax like any other dosh.

The country's ministry has declared that Bitcoins are “units of account” and should be regarded as “private money”. What this means is that anyone trading in the virtual currency will be liable to pay capital gains tax of 25 per cent.

However, in line with the country's well-known penchant for saving, anyone simply hoarding Bitcoin will not have to pay tax if their virtual wedge grows in value. All they need to do is keep the Bitcoin for more than 12 months to dodge the taxman.ock.

The decision was announced by Frank Schaeffler, of the federal ministry of finance, and announced in Die Welt.

Of course, the one problem with taxing Bitcoin is that it's often impossible to work out how much any one person owns. The currency is broadly anonymous and there are few reliable methods for actually establishing where a transaction took place, meaning that levying national or regional sales tax could be nigh on impossible.

A federal judge in Texas recently declared Bitcoin a currency, but this attitude has not filtered up to the highest levels of American government. New York took a different attitude and subpoenaed 22 different Bitcoin companies earlier this month. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?