Norway Tax Authority Believes Norwegians Are Hiding Money In Cryptocurrency
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Loading... - Heather Craven
- 28 Jan 2022
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While cryptocurrency is not yet mainstream, many people all over the world have begun to experiment with the likes of Bitcoin and Ethereum. That's especially true in the highly digital societies of Scandinavia.
Cryptocurrency is an internet-based medium of exchange using blockchain technology for decentralisation and transparency. Currency is sent directly between two parties by the use of private and public keys.
Tax on cryptocurrency in Norway
This also means it is not controlled by a central authority, keeping the medium away from government control, in theory at least.
As cryptocurrency has become more popular, governments around the world have struggled to adapt to the technology, especially when it comes to tax.
Norway treats cryptocurrency the same as any other income or wealth when it comes to your personal tax basis. That means if you own or have sold cryptocurrency, you should enter it in the annual tax return so that income tax and wealth tax can be correctly applied.
If you hide this information from the Tax Administration, you risk paying fines and/or additional tax.
How many people pay tax on cryptocurrency in Norway?
In 2019, less than 5,000 reported income or wealth in cryptocurrency. On the 2020 tax return, this number had risen to more than 13,000. In total, NOK 951 million was reported as income, with a total wealth of NOK 7.5 billion.
However, despite this increase, the Tax Administration knows there is much more that hasn't been declared. Read More…
