Great news for our users in Austria!
Keeping track of tax obligations can be daunting, but we're here to make it easier for you. At 21bitcoin, we've integrated an automated process that complies with the new Austrian tax regulations and takes the hassle out of taxing your Bitcoin profits.
As a regulated and secure bitcoin platform, we're proud to offer this service.
From 1 January 2024, Austria will be implementing changes to cryptocurrency taxation that will affect bitcoin. This is important if you're selling bitcoin for profit and are a tax resident of Austria (i.e., having your residence or habitual abode in Austria).
What's changing?
From 1 January 2024, Austrian crypto trading platforms and brokers will be required to withhold capital gains tax (CGT) on profitable cryptocurrency transactions. This applies to cryptocurrencies purchased after 1 March 2021. The tax rate will be a flat 27.5%.
Who is affected?
The rule applies to anyone resident or ordinarily resident in Austria who buys and sells cryptocurrencies after 1 March 2021.
How our Bitcoin Tax Process works
Sales of bitcoin acquired after 1 March 2021 are subject to capital gains tax. We calculate the tax by deducting your acquisition cost from the sale price and withholding 27.5% tax on the profit.
Example: Single Purchase
Purchase in January 2023: 1 BTC for €20,000
Sale in January 2024: 1 BTC for €45,000
Profit: €45,000 - €20,000 = €25,000
Capital Gains Tax (27.5%): €25,000 × 27.5% = €6,875
Payout after tax: €45,000 - €6,875 = €38,125
Example: Multiple Purchases
First purchase in March 2023: 1 BTC for €20,000
Second purchase in April 2023: 1 BTC for €25,000
Third purchase in May 2023: 1 BTC for €24,000
Sale in January 2024: 1 BTC for €45,000
Average purchase price: (€20,000 + €25,000 + €24,000) / 3 = €23,000
Profit: €45,000 - €23,000 = €22,000
Capital Gains Tax (27.5%): €22,000 × 27.5% = €6,050
Payout after tax: €45,000 - €6,050 = €38,950
Flat Tax for missing Data
If there's no information on the cost and date of purchase, a flat-rate tax is applied, assuming that 50% of the selling price is the cost. In this case, filing a tax return is mandatory, unlike in other cases where all the required information is available.
Selling old Assets
Bitcoins purchased before 1 March 2021 can be sold tax-free. It's important that you tell us the cost and date of purchase to ensure tax exemption.
Disclaimer
Please note that this article is for general information only and does not constitute tax advice. For personalized advice, we recommend that you contact a tax advisor.