Denmark’s Tax Law Council has proposed a bill for taxing unrealized gains and losses on crypto assets starting potentially in 2026. The Council suggests that crypto assets should be taxed under a unified framework, considering three possible taxation models: capital gains tax, warehouse taxation, and inventory taxation. Danish Tax Minister Rasmus Stoklund highlighted the challenges faced by investors under the current capital gains tax system and pointed to the need for simpler tax rules. The report favors an 'inventory taxation' model, where the entire crypto portfolio is treated collectively, with taxation occurring annually regardless of asset liquidation. Additionally, the proposed bill aims to mandate crypto service providers to report customer transaction data to enhance regulatory oversight. The Danish Parliament is expected to review the recommendations, with 2025 seen as the earliest for introduction. If approved, the tax rules could take effect from January 1, 2026.

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