48 declared that they had cryptocurrency - it should be entered in the tax return

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In their 2022 return, 48 people confirmed that they had cryptocurrency. A year earlier there were 155 of them.

– We know that there are many more people who actually own cryptocurrency. Remember that you must enter information about cryptocurrencies in your tax return – says tax director Nina Schanke Funnemark.

Cryptocurrency must be entered on your tax return

The number of people who included information about virtual assets in their tax returns nationwide increased to approximately 2022 in 48. people out of approx. 45 thousand in 2021. For comparison, in 2020 this number was only approximately 15.

– Over time, we have observed a rapid increase number increase people reporting cryptocurrency possession, says Nina Schanke Funnemark.

There are several factors that have led to more and more people reporting cryptocurrency in 2020 tax return. Both the increased focus on taxation of cryptocurrencies and the strong fluctuations in cryptocurrency exchange rates were important driving forces.

However, the tax office's own estimates show that only 15 percent cryptocurrency holders report it in their tax return.

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It is taxable and must be reported on your tax return

There are no separate tax rules for cryptocurrencies. From a tax point of view, cryptocurrency is an asset. This means that if you sell cryptocurrency for a profit, it is subject to tax, a if you sell with a loss, is deductible. You must also list your cryptocurrency holdings on your tax return so that your asset details are correct.

– Many people do not exchange cryptocurrencies and it is usually of small value, because perhaps they have only tested what it is like to buy and own cryptocurrencies. However, every cryptocurrency trade must be reported on your tax return, regardless of how much it is worth, says the tax director.

– If you own, bought or sold cryptocurrency in 2023, you must report it yourself on your tax return before expiry of the deadline. There are no pre-filled values, says Nina Schanke Funnemark.

The tax rate on income from profits is 22%

The Tax Director also reminds you that even if you have filed your tax return, you can still make changes. This may apply to both this year's and previous years' returns. Changes can be made three years later.

Many have not thought about tax

The Norwegian Tax Office has its own group of experts that deals specifically with cryptocurrencies. Among other things, they are investigating why many people did not report it as an obligation earlier on their tax return.

– We believe this may be due to the fact that some cryptocurrency owners wrongly assume that cryptocurrency is pre-filled in their tax return and have not taken into account that they are the ones who have to enter it themselves. In our experience, most people want to comply with all laws and regulations, and we want to help those who invest in cryptocurrencies report this correctly, Schanke tells Funnemark.

Others may have assumed that owning, buying and selling cryptocurrency is anonymous and that they can avoid taxes by not reporting it for tax. Unfortunately, this can be expensive, says the tax director:

– There is an obligation to show this in your tax return, and if you conceal information from the Tax Office, you are exposed to additional tax.

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Children and teenagers also have cryptocurrencies

In recent years Norwegian Office The tax officer learned that children and teenagers may also have large amounts of cryptocurrencies.

The tax authorities do not have good data on this scope, because these values ​​​​usually have to be reported on the tax return of parents until the age of 17. The challenge is that parents are not necessarily aware that their child has cryptocurrency. We have seen cases where, by accident, it turned out that a teenager at home was sitting on millions of dollars.

However, children and young people's own attitude towards taxes is often limited to having a tax exemption card or a tax card in connection with part-time work or holidays.

– Although it is often not a conscious choice among young people that these digital values ​​​​are not reported for tax, we see that in the long run it can help develop attitudes among the younger generation that tax is not that important – says director Nina Schanke Funnemark and continues:

– Our appeal to parents is; talk to your child about taxes and ask if they have cryptocurrencies. And the advice for everyone - both young and old - is to contact the Tax Office if you have any questions.

How to report a cryptocurrency

You must self-report cryptocurrency on your tax return.

There is a separate information field in your tax return where you must fill in cryptocurrency.

If you sold cryptocurrency at a loss, you can get a deduction for it, but you must be able to document both the initial value and the sale price as best as possible with information from cryptocurrency exchanges.

It is important to ensure that the overall result of all trades is entered as a total (profit/loss) - and not just the total amount of cryptocurrency held.

For three years from the deadline for submitting your tax return, you have the opportunity to change your data and re-submit your tax return. The deadline to amend your 2020 tax return is April 30.

Na skatteetaten.no/virtuellvaluta you'll receive guidance on how to determine the value, report and document profits, losses, dividends and assets for cryptocurrency

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