TL;DR
In Germany, the “DE-Counterpart Prices” model converts the non-FIAT asset in a crypto trade into its FIAT equivalent to determine the cost basis for tax purposes. It applies when neither asset is FIAT or a stablecoin and the slippage is below 20%.
If slippage is under 20%, both traded assets are converted into FIAT values to calculate gains and losses. If slippage is 20% or higher, only the sold asset (e.g., BTC) is converted to FIAT.
Slippage is calculated as:
(Buy Value – Sell Value) / ((Buy Value + Sell Value) / 2)
If the result exceeds 0.2 (20%), the Equivalent Value Pricing model does not apply.
Example:
DE Counterpart Prices:
Buy 50 DOGE for 0.05 BTC (assuming USD is your FIAT currency).
Slippage 10%:
Convert 0.05 BTC into USD to determine the cost basis for DOGE, and
Convert 50 DOGE into USD to determine the proceeds for BTC.
Slippage 20% or higher:
Convert only the 0.05 BTC into USD.
For more information, see section “i”.
Slippage Calculation
The 20% threshold is determined based on the average value of both traded assets.
The formula is as follows: Slippage=(Buy Value−Sell Value) / ((Buy Value+Sell Value) /2)
If the result exceeds 0.2 (20%), the transaction is considered above the slippage threshold.
Example:
You buy 50 DOGE for 0.05 BTC
0.05 BTC = USD 1,500
50 DOGE = USD 1,200
Slippage=1500−1200 / (1500+1200)/2= 300/1350≈ 0.22=22%
Since 22% > 20%, the slippage exceeds the threshold.
→ In this case, only the BTC amount is converted into USD, and the Equivalent Value Price model does not apply.