Bitcoin Sold Without Austrian Tax Withheld: What to Do Next

Bitcoin Sold Without Austrian Tax Withheld: What Investors Have to Do Next

You sold Bitcoin and the full amount landed in your account – with no 27.5 percent capital gains tax deducted. That does not automatically mean the sale was tax free. If no Austrian capital gains tax withholding agent was involved, Austrian taxpayers must generally report a taxable Bitcoin gain themselves through their income tax assessment. This applies in particular to sales through certain foreign crypto platforms, or to direct transactions with no Austrian withholding agent.

27.5 Percent Applies Even Without a Tax Deduction

The missing automatic deduction does not generally change the tax rate. Taxable private income from cryptocurrencies is generally subject to the special tax rate of 27.5 percent in Austria.

It can be collected in two ways:

• automatically, as capital gains tax,
• or through the income tax assessment.

Example:

• Bitcoin acquisition cost: 20,000 euros
• Sale: 50,000 euros
• taxable gain: 30,000 euros
• At 27.5 percent, that generally works out to 8,250 euros in tax.

The Entire Sale Proceeds Are Not Taxed

The tax is generally levied on the realised gain - not on the full 50,000 euros. What matters, therefore, are the correct acquisition costs. Where there have been several purchases, the Austrian moving average price rules can become relevant. Earlier tax-neutral crypto-to-crypto swaps also have to be taken into account, because the historical cost basis is generally carried forward.