EN
As cryptocurrencies continue to develop so does the ability of the tax authorities to monitor cryptocurrency. This development is largely due to advanced technological tools and regulatory changes designed to enhance transparency in the crypto market.
Among these tools, Chainalysis is one of the most popular tools used by tax authorities to monitor blockchain transactions. It is not currently known if the Norwegian tax authorities use Chainalysis.
The EU and the UK have already committed to mandating that all crypto exchanges operating with EU and UK clients, must share client information about their crypto activities to the local tax authorities.
This shows that it is not out of the question for us to see a similar development in Norway. If such a situation does occur you want to make sure you’ve resolved any issues with your declaration to avoid penalties.
The Consequences of non-declaration
If someone knowingly gives false or incomplete information to a government agency, or doesn't provide information they're supposed to, and they know or should know that doing so could give them tax benefits, they can be fined or sent to jail for up to two years.
How to declare your cryptocurrency taxes for previous years
How are cryptocurrencies taxed?
In Norway, cryptocurrency transactions are subject to a 22% capital income tax, encompassing trades, earnings, and other taxable events such as exchanges, sales, and purchases of goods or services with crypto. Additionally, cryptocurrencies are considered part of your net wealth for the wealth tax, which applies to net wealth exceeding 1,700,000 kroner. This includes the responsibility to declare the value of your cryptocurrencies at year-end, a crucial factor for wealth tax calculations.
It's a common misconception that only the sale of cryptocurrencies for fiat currency (e.g., NOK) triggers tax obligations. In reality, a wide array of transactions including mining, staking, and dealing with NFTs also fall within the taxable spectrum. Accurate reporting of all these transactions is essential to remain compliant with Norwegian tax laws, avoiding potential penalties and fines.
How do I calculate my cryptocurrency taxes?
You can use a cryptocurrency tax calculator made for Norway to calculate your cryptocurrency taxes. Divly will help you calculate the value of your crypto holdings, the taxable gain, and deductible profit. If you've earned crypto through mining or staking then divly will also show you the value of your rewards you should declare.
Divly will also provide you with a pdf with a summary of your crypto activity which you should attach to your declaration.
Updating your tax returns
You have three years after the deadline to correct your tax declaration. For example for the 2022 year, you have until 30 April 2026 to correct your declaration. Should there be an error for 2019 or earlier then you will have to submit an appeal to the tax Administration.
As a private individual you can correct a previous tax return, companies will have to submit a new tax return.
How to correct your tax return:
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Log in to My tax
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Select Go to my tax documents
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Select the income year you want to change
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You will be redirect to form RF-1366 to make any changes
Once in the RF-1366
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Enter your e-mail address and your telephone number
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Look for the relevant categories you want to change in the drop down list
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In the fields labelled Change from fill in the value you want to change. In the field labelled Change to enter the corrected value. If you are adding a new item you must enter “0” in the Change from field.
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Under Additional Information you must state the item number you want to change, or provide a descrition of the income/deduction/asset you are looking to change
Any tax-related information provided by us is not tax advice, financial advice, accounting advice or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our opinion and not a statement of fact.
