Last year, 48,155 people reported in their tax return that they own cryptocurrency. The previous year, the number was 43,440.
– We know that there are far more people who actually own cryptocurrency. Remember that you must enter information about cryptocurrency in the tax return yourself, says tax director Nina Schanke Funnemark.
The number of people who on a national basis entered information about virtual assets in the tax return rose to around 48,000 people in 2022 from around 45,000 in 2021. In comparison, the figure for 2020 was only around 15,000.
– Over time, we have seen a sharp increase in the number who report that they own cryptocurrency, Nina Schanke Funnemark tells.
There are several factors that have led to more people reporting cryptocurrency in their tax return since 2020. Both an increased focus on the taxation of cryptocurrency and strong fluctuations in cryptocurrency exchange rates have been important driving forces.
But despite the improvement over time; the black figures are still large. The tax authority’s own estimates indicate that only 15 percent of those who own cryptocurrency state this in their tax return.
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Taxable and must be entered in the tax return
There are no separate tax rules for cryptocurrency. In tax terms, cryptocurrency is an asset. This means that if you sell cryptocurrency at a profit, it is taxable, and if you sell at a loss, it is deductible. You must also list the amount of crypto you own in your tax return, so that the figures for your assets are correct.
– Many of those who do not list cryptocurrency tend to have small values, perhaps they have only tested out what it is like to buy and own crypto. But all trading in cryptocurrency must be entered in the tax return, regardless of how much it is worth, says the tax director.
– If you own, have bought or sold cryptocurrency during 2023, this is something you must enter in your tax return before the deadline expires. There are no pre-filled numbers, says Funnemark.
The tax rate on income from gains is 22 percent.
The Director of Taxation also reminds that even if you have submitted your tax return, you can still make changes, both in this year’s tax return and for previous years.
– Then you must remember to deliver it again. You can make changes three years back in time, says Schanke Funnemark.
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Many have not thought about the tax
The Norwegian Tax Agency has its own expert group that works specifically with cryptocurrency. Among other things, they investigate why many people have not previously reported on the tax return as obliged.
– We think this may be due to the fact that some crypto owners mistakenly assume that cryptocurrency is pre-filled in the tax return, and have not considered that it is they themselves who have to enter this. Our experience is that most people want to follow all laws and regulations, and we want to help those who invest in crypto to report this correctly, says Schanke Funnemark.
Others may have assumed that owning, buying and selling cryptocurrency is anonymous, and that they can avoid taxes if they don’t declare it for taxation. It can cost you dearly, says the tax director:
– You are obliged to state this in the tax return, and risk additional tax if you hide information from the Tax Authority.
Children and young people a separate target group
In recent years, the Norwegian Tax Agency has learned that children and young people can also have large crypto values.
The tax authorities do not have any good figures on the extent, as these values must as a rule be stated in the parents’ tax return until the age of 17. The challenge is that the parents are not necessarily aware that their child owns cryptocurrency. We have seen cases where it has come to light by chance that the teenager in the house was sitting on values in the millions.
Children and young people’s own relationship with tax, on the other hand, is often limited to the fact that they have a tax exemption card or a tax card in connection with a part-time or summer job.
– Although it is often not a conscious choice among young people that these digital values are not declared for taxation, we see that in the long term this can help to create attitudes among a younger generation that tax is not that important, says the tax director Nina Schanke Funnemark, and continues:
– Our appeal to parents is; talk to your child about taxes, and ask if she or he owns cryptocurrencies. And to everyone – both young and old – the advice to contact the Tax Office if you have any questions applies.
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How to report cryptocurrency
You must report cryptocurrency on your tax return yourself.
In the tax return, there is a separate information field where cryptocurrency must be filled in.
If you have sold cryptocurrency at a loss, you can get a deduction for it, but you must be able to document both the entry value and the sale price as well as possible with information from the crypto exchanges.
It is important to make sure that the overall result for all transactions is reported in total (gain/loss) – not just the total amount of cryptocurrency you own.
For three years after the submission deadline, you have the opportunity to change the information and submit the tax return again. The deadline for changing the tax return for 2020 is 30 April.
At the Swedish Tax Agency, you will receive guidance on how to determine the value, report and document gains, losses, dividends and assets for cryptocurrency
The 30 municipalities with the most crypto owners:
Oslo 11,146
Bergen 3,306
Trondheim 2,544
Stavanger 1,563
Bærum 1,500
Kristiansand 1,145
Drammen 956
Ashes 945
Lillestrøm 815
Tromsø 745
Sandnes 732
Fredrikstad 698
Nordre Follo 653
Ålesund 528
Tønsberg 526
Bodø 505
Lørenskog 473
Sandefjord 461
Moss 403
Ski 395
Sarpsborg 376
Haugesund 344
Woolen cases 335
Karmøy 332
Arendal 327
Øygarden 325
Kongsberg 301
Sun 299
Porsgrunn 295
Larvik 290
Tags: Cryptocurrency Tax return Larvik list municipalities crypto owners
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