#19(Non)taxation of virtual currencies acquired by donation
Income obtained by donation is\xa0not subject to income tax, neither in the case of natural persons nor legal persons. Therefore, at the time of acquiring the virtual currency by donation, there is no obligation to pay tax on this gift.\xa0The tax is paid only for the tax period in which the virtual currency is sold,\xa0while the entire income from the sale is taxed, not just the entry price of the given virtual currency.
Consequently, taxation occurs only through the sale of this virtual currency, which according to the Income Tax Act means "exchange of virtual currency for property, exchange of virtual currency for another virtual currency, exchange of virtual currency for the provision of a service or transfer of virtual currency for consideration."
For a\xa0natural person\xa0- non-entrepreneur - income from the sale of virtual currency represents\xa0other income, according to\xa0§ 8 of the Income Tax Act. In the case of a natural person - an entrepreneur - this virtual currency is included in\xa0business assets. According to § 6 par. 1 and 2 of the Income Tax Act, for an entrepreneur, the income from the sale of virtual currency included in business assets is\xa0income from a business, for which it is possible to claim a flat rate of 60% (up to a maximum of € 2,000 or real expenses).
In the case of a\xa0legal entity, the acquired virtual currency will be valued at fair value (market price from the selected public market) and the legal entity will include such virtual currency in\xa0short-term financial assets.\xa0The income from the virtual currency will be included in the tax base only at the time of sale of the virtual currency. At the same time, it may recognize costs due to the\xa0derecognition of the virtual currency from the asset\xa0at fair value at which the virtual currency was measured at the time of free acquisition. As the Income Tax Act does not stipulate the entry price of a virtual currency acquired by donation, the cost of the fair value at which the virtual currency was measured at the time of free acquisition will be a\xa0deductible item at the time of disposal.
