Feeds

Bitcoin blitzkreig as Germans prepare to tax virtual currency

Berlin puts its towel on virtual sunlounger

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.