Crypto Assets: Tax Law and Policy in Denmark

In Denmark, crypto assets have given rise to a number of questions concerning the tax treatment of gains and losses on the sale and other types of disposal of crypto assets. However, so far, no regulation specifically targeting crypto assets has been adopted. Instead, the uncertainty on the taxation of crypto assets has resulted in a significant number of administrative rulings and, at this point in time, a few cases have reached the Danish courts. Accordingly, this chapter, to a great extent, is based on the published administrative rulings, and it is needless to say that changes in the applicable tax treatment of crypto assets may occur as the appealed cases move up the court hierarchy. Moreover, it is expected that the Danish Tax Law Council[1] will publish a report providing guidance on changes to the current law based on which politicians will decide whether the current law can be made easier to comply with and enforce. The Danish Tax Law Council was to report to the Minister of Taxation by mid-2023; however, so far, no status on the report has been provided.