German Draft Bill Splits Shiba Inu Holders into Tax-Friendly and Not-So-Much

The price of Shiba Inu (SHIB) stands at $0.00000568 on October 3, down 93.4% from its record high.

This decline in price is overshadowed by a more significant development: the German federal finance ministry's draft bill that could change how SHIB is taxed.

The bill proposes to split holdings of SHIB into two categories: those bought before December 31, 2026, and those acquired after this date. For old holdings, the one-year holding period for tax-free gains will remain in place, but new holdings will be subject to taxation regardless of how long they're held.

This distinction is crucial for SHIB holders because it could affect their ability to offset losses or claim tax benefits. If you buy more SHIB into a portfolio that's currently in the red, the purchase date becomes a critical factor in determining whether your new holdings are grandfathered or subject to section 20 of the Income Tax Act.