The Norwegian tax authorities have warned crypto traders ahead of the April 30 deadline to file tax returns.
Today, according to a report from the Norwegian tax authorities, or NTA, the government agency advised all taxpayers who owned or sold cryptocurrency in 2020 to enter it on their returns or “ risk paying additional tax. ” The NTA said that about 2% of cryptocurrency holders stated what tokens they owned or earned in 2019, less than 4,700 people out of an estimated 235,000.
“We think much of the gap is due to the fact that some crypto owners mistakenly assume that cryptocurrency is pre-populated in the tax return and have not thought they are the ones to disclose it,” said NTA senior advisor Marius. Johansen. “Our experience is that most people will follow all laws and regulations, and we will help those who invest in crypto get it right.”
In Norway, income identified as cryptocurrency gains is taxed at a rate of 22%, similar to the capital gains tax imposed in the United States. Norwegian taxpayers may receive a deduction in their 2020 deposits if they have incurred losses as a result of crypto investments, but they may need to substantiate their claims with documentation from exchanges used to hold or trade the digital assets .
The NTA explicitly urged taxpayers not to declare their crypto earnings anonymous. Johansen said crypto transactions are “more visible than many people think” and the agency closely followed the activities and identified “many tens of thousands of people” who previously did not report their taxes correctly.
Cryptocurrency can make a greater contribution to widening the tax gap – the difference between the total income from taxes that must be paid to the government rather than what it actually receives. In Norway, the NTA reported that approximately $ 20 million in taxed income came from crypto holders.
US lawmakers are considering legislation to address the tax gap, which has grown from about $ 400 billion in 2013 to a reported $ 1 trillion this year. A bipartisan group is reportedly backing a bill by Republican Senator Rob Portman that should prevent US citizens from dodging taxes on their crypto earnings.