This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.
Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.
And look at the percentage of tax...
In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.
And look at the percentage of tax...
Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.
True, but either way, people can move. They have the choice - stay where you value is stolen form you by law, or move where you are treated best.