Taxes Germany

[Dibo]

Hi Guys,

     This is my first post here. Please pardon me writing in English. My German is not the best and this is a quite technical subject. I am not sure I could express it in German.

That being said, thank you for your understanding!

   I have invested in crypto at the end of 2016 and unfortunately until today I haven't payed any takes on my investments. This is more from negligence and lack of understanding than anything else. I am not a heavy trader but more like a hodler however I did bought and sold and received coins from various forks. As an example I "panic sold" at first with no big profit. I think somewhere around 500-550e or so. Regardless going forward I am looking to go for a consultation with a tax consultant or use some software to calculate my taxes. 

   I have a couple of questions for you.  

1) First how much taxes one has to pay for the profits in Germany? From what I understand is around 25%. Is it correct?

2) What should I expect from Finanzamt for declaring the taxes on profits so late?

3) Would you recommend a software or a tax consultant for this kind of job? If yes, which software would you recommend.

4) How much would a tax consultant charge me for such a job?  A rough estimation would be enough.

 

Thank you for your time and I look forward to your answers.

[skunk]

vor 3 Stunden schrieb Dibo:

First how much taxes one has to pay for the profits in Germany? From what I understand is around 25%. Is it correct?

For profit on the share market it would be 25% but the crypto market doesn't fall under that. Crypto works more like an investment into gold. The profit will be taxed with your personal tax rate. It depends on your total incoming including your job salary. So if you have a high payed job you might have to pay more than 25%.

vor 3 Stunden schrieb Dibo:

What should I expect from Finanzamt for declaring the taxes on profits so late?

Depends on who noticed it first. If they write you a letter you are basically screwed. If you notice your mistake first you can get out of that situation with only a small penalty. What you have to do for this is correcting all the wrong tax reports for the past years and go with that to a tax consulten. He will do the paper work for you. The process for this includes a self-disclosure and you will get some scary responses to that. Don't worry if the paper work is correct you will not go to jail. At the end you only have to pay the taxes plus interest. That is the advantage of this process.

vor 3 Stunden schrieb Dibo:

Would you recommend a software or a tax consultant for this kind of job? If yes, which software would you recommend.

I would recommend both. The tax consultant can be expensive and you don't want to let him do any work that you could do yourself. However the software is unable to fill out the paper work at the end. A good tax consultant will help you with that.

I would recommend cryptotax

 

[Dibo]

Thank you for your answer Skunk.

Zitat

Depends on who noticed it first. If they write you a letter you are basically screwed. If you notice your mistake first you can get out of that situation with only a small penalty. What you have to do for this is correcting all the wrong tax reports for the past years and go with that to a tax consulten. He will do the paper work for you. The process for this includes a self-disclosure and you will get some scary responses to that. Don't worry if the paper work is correct you will not go to jail. At the end you only have to pay the taxes plus interest. That is the advantage of this process.

Yes, it's me who will notice the mistake first but definitely not very encouraging 🤔 I will look into Cryptotax see what it can do.

Again thank you for your feedback.