Danish tax proposal on unrealized cryptocurrency gains: the goal is to implement new regulations by 2026.
The Danish Tax Council has recently suggested the introduction of a bill to tax unrealized gains and losses related to digital assets, starting in 2026.
Details of the Council’s report
In the 93-page report on the tax regime applicable to cryptocurrencies, the Council examined three potential methodologies for taxing digital assets:
- Capital gain taxation
- Warehouse taxation
- Inventory taxation
The report proposes a uniform approach to the taxation of digital assets, valid in all contexts. Danish Tax Minister Rasmus Stoklund emphasized the need for clearer rules to avoid unfair taxation under the current regime.
Preference for the inventory model
Among the alternatives discussed, the report leans toward the “inventory taxation” model. This model stipulates that the entire cryptocurrency wallet is considered a single “inventory,” taxed on an annual basis at a specific date, regardless of the sale of the assets.
In a similar scenario, digital assets would be treated like other financial instruments such as stocks and bonds, taxing both unrealized gains and losses. Details regarding the retroactive application of tax rules for current wallets remain unspecified.
Obligations for operators
Some additional proposals suggest that service providers for digital assets, such as exchanges or cryptocurrency payment companies, should collect and share data on customer transactions. This information could support collaboration among European Union countries on tax matters.
Timelines and implementation prospects
The bill will be presented to the Danish Parliament no earlier than 2025. If adopted, the new rules would come into effect on January 1, 2026. The recommendations will need to be evaluated and approved by the Parliament before becoming official.
Rasmus Stoklund highlighted the need for clearer rules for cryptocurrencies, expressing interest in discussing it with the involved parties:
“It is my opinion that there is a need for clearer and more appropriate rules in the area. That is why I am also looking forward to putting forward a bill and discussing it with the parties in the Folketing [Danish Parliament].”
International context
The Danish proposal fits into a growing international mosaic of tax regulations for cryptocurrencies. In the United States, for example, a 25% tax on unsold assets has been proposed by presidential candidate Kamala Harris. At the same time, Italy is considering an increase in taxes on capital gains for holders of Bitcoin and digital assets, raising it from 26% to 42% by 2025.
