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Germany plans tax on bitcoin after virtual currency is recognized as 'private money'
From The Telegraph, London
Monday, August 19, 2013
http://www.telegraph.co.uk/finance/globalbusiness/10252383/Germany-plans...
The German Finance Ministry ruled that bitcoin is a "unit of account" and therefore "mining" them is a form of "money creation."
This means that, like stocks or shares, any profit from them is subject to Germany's capital gains tax, at 25 percent -- unless they are held for more than a year, according to German newspaper Frankfurter Allgemeine Zeitung.
However, the ruling may prove difficult to enforce, as Bitcoin are traded anonymously, and therefore cannot be traced.
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In June, America's Internal Revenue Service (IRS) said it was examining the use of virtual currencies such as bitcoins amid fears that Americans are using them to evade taxes.
In the future, taxpayers could be forced to disclose to the IRS whether they are using PayPal accounts for the virtual transfer of money, according to Victor Lessoff, director of the IRS.
Last month Thailand became the first country to ban bitcoins after the central bank ruled it is not a currency.
The ruling means it is illegal to buy and sell bitcoins, buy or sell any goods or services in exchange for bitcoins, send any bitcoins to anyone outside of Thailand, or receive bitcoins from anyone outside the country.
Launched in 2009 in the wake of the global financial crisis, bitcoins are "mined" using complex computer source code. The virtual currency started as a relatively niche method of payment, devised by an anonymous programmer, but can now be used for anything from online gambling to pizza delivery.
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