Hardfork means when the blockchain of a token leaves its previous path and hits a new one. This process creates a new currency. For example, in August 2017, Bitcoin Cash (BCH) was created as a derivative of Bitcoin (BTC), the best-known cryptocurrency so far.
Cryptocurrencies are constantly evolving as well. Therefore, every now and then modifications of their protocols become necessary. This way, various new features or updates are integrated. These can be small additions, but also larger changes, such as the block size.
Such changes do not always enjoy the full approval of the community. This often leads to a split in the miner community. One part continues to use the "old" blockchain and the other part uses the new blockchain. The result is a crypto hardfork or ledger split and thus the creation of a new cryptocurrency.
How hardforks are taxed in Germany is still not entirely clear and gives rise to different points of view.
The taxation of hardforks in Germany therefore depends on each individual case. Our experienced tax lawyers and tax advisors will be happy to examine your specific situation and assist you with your income tax return.
Would you like to know how your tokens from a hardfork are to be assessed for tax purposes in Germany? You do not know the tax consequences of selling cryptocurrency created by a hardfork? Your contact persons for all questions concerning the taxation of ledger splits are
We will gladly assist you with advice and support for questions regarding the taxation of cryptocurrencies in Germany. The easiest way to reach us is by e-mail (email@example.com), by phone (+49 69 76 75 77 80) or via our contact form for the taxation of cryptocurrencies.