If you own or have sold cryptocurrency, you must enter it in the tax return. If you hide the information from the Tax Administration, you risk paying additional tax.
The tax authorities have so far identified 70,000 people in Norway who own cryptocurrencies but estimate that the real number is far higher.
Senior adviser Marius Johansen emphasizes that cryptocurrency is not pre-filled in the tax return. Less than 5,000 people reported what they owned or had earned on cryptocurrency in the tax return for 2019.
“You must take responsibility for listing inventory as wealth, gain as income, or any loss as a deduction and submit the tax return with your changes,” Johansen said.
Income from gain has a tax rate of 22%. In the new tax return, there is a separate information field where cryptocurrency must be filled in.
“You must report gains and assets for last year, regardless of the value as of today,” he said.
The Tax Administration has its own expert group that works purposefully with cryptocurrency. The group investigates, among other things, why many have not previously reported on the tax return as obligated.
“We think a lot of the gap is precisely due to the fact that some crypto owners incorrectly assume that cryptocurrency is pre-filled in the tax return and have not thought about the fact that it is they who have to list 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 do it right,” Johansen said.
If you have sold a 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.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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