More and more private individuals are holding cryptocurrencies. The cryptocurrency portfolio must be declared in the tax return and taxed as part of the assets. There are several points to consider regarding the taxation of gains and losses on cryptocurrencies.
Tax-free capital gains
If cryptocurrencies are held in private assets, capital gains are tax-free, as with other securities. Nevertheless, capital losses are also irrelevant for tax purposes and cannot be deducted from taxable income.
Gains from self-employment
If cryptocurrencies are part of business assets, the tax provisions for self-employment apply. In particular, professional trading in cryptocurrencies is included. For the delimitation with respect to private asset management, the practice for professional securities trading is applied by analogy.
Cryptocurrency mining, i.e., the provision of computing power by a natural person in return for payment, qualifies as taxable income from an independent gainful activity.