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RE: Taxes and Steem - a question
How does Denmark tax income earned in virtual currencies on online gaming platforms?
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How does Denmark tax income earned in virtual currencies on online gaming platforms?
Posted using Partiko iOS
I am not sure the tax people even know themselves. I have never invested one dime in crypto, but earned it through Steemit and donations. I sold December 17 2017 and asked for them what to do in Feb. 2018 - they only first returned now. They are at their wits end, but I hope they just give me an amount and then I'll gladly pay it to end this mess.
Finland taxes virtual currency income from online games and entertainment platforms only when taken off the platform.
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Yes, it is about the same in Denmark as far as I understand. They tax it like shares, but that mean they have to calculate exchange gains and losses at the time the transaction happens. With steem you have maybe 10-20 post/comment reward each day and 20-30 curation rewards... that really adds up over a year. In this case he said that I could make an explanation on how Steem works and a general overview, but it is very hard to find the historical data, say for a quarterly day or so. I had a lot of donations close to the point and I only sold SBD so I can probably convince him that it is those money I used. I sold in the very days Bitcoin topped and 95% of it is therefore probably exchange gains and taxable. But I can hear that they sort of owe me for ditching me for so long so I am not that concerned.
I wrote:
Katharsisdrill:
No. Virtual currency earned in online games and entertainment platforms is not taxable at the moment a transaction takes place (when a player gains possession of a virtual currency used in an online game) in Finland. It is really only taxed when it exchanged for virtual currencies external to the platform, fiat or goods or services. Our tax guidance is very clear on that. Say, if you pick up virtual mushrooms in some games and you get paid virtual dollars for them, the virtual dollars are not taxable income until you cash them out into real dollars. That's how it should work. Nothing else makes any sense. There are hundreds of millions of children playing MMOGs all over the world. The number of transactions is so large and so few games provide any tools suitable for accounting for their value in a way acceptable to every possible country that only taxing cashed out virtual income makes sense.
Considering Steem income taxable at the moment the virtual currencies are received is a nightmare scenario. First of all, the data is not available and not easily calculable. If your tax guidance allows it, Steem income is best treated as income from an MMOG in which case it may not be taxable at all until it's cashed out or swapped for BTC or something is bought with it. I'm guessing a lot of people are not paying any taxes on their Steem income. Nearly everyone is anonymous here so the chances of getting caught are minimal.
Ah, OK! that way. I really hope that will be the way they eventually do it here too. I'll ask the man who I should write to propose it.
It seems both Norway and Finland are ahead of Denmark in this.