BMF on the treatment of virtual currencies and tokens under income tax law

The Federal Ministry of Finance, together with the supreme tax authorities of the German states, has prepared a draft BMF letter on the income tax treatment of tokens in general and virtual currencies such as Bitcoin in particular , on which the associations concerned are currently being consulted.

Key Facts

Federal Ministry of Finance drafts BMF circular on the income tax treatment of tokens
Focus on virtual currencies such as Bitcoin in a special context.
Affected associations are involved and consulted in the process.
The final version of the letter will be officially published after review.
The aim is a guide for administration, business and taxpayers.
The letter is provisional and does not take into account any final regulation.
Consideration of corporate structures and the German Banking Act required for business activities.

After reviewing the comments of the associations and renewed consultation with the supreme tax authorities of the states, the Federal Ministry of Finance will officially publish the final version of the BMF letter. This is intended to provide practitioners in administration and business and individual taxpayers with a guide to the income tax treatment of tokens and virtual currencies.

The letter makes some interesting points, but is of course only a draft and not conclusive. In addition, there is the fact that business actions or project/company financing must also take into account the company structures, the type and manner of tokens, possible requirements of the German Banking Act and other aspects.

Statement of the BMF

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.