Norwegian Tax regulator warned its crypto users of the country to start declaring their crypto earnings with April 30 being the final deadline as we can see more in our latest crypto news today.
The Norwegian tax regulator advised crypto holders to declare their earnings and all crypto holders in the country already were warned to declare their earnings before the deadline. According to the agency, failure to report taxes could result in “paying additional tax.”
Kryptovaluta for milliarder av kroner rapporteres i skattemeldingen https://t.co/VAc8hhDyBX pic.twitter.com/6AgHeWvxkJ
— Skatteetaten (@Skattenmin) April 21, 2021
With crypto prices soaring over the past year, the tax authorities across the world are focusing their attention on crypto holders and the latest in line was Norway with the tax regulator issuing a warning to the users with a deadline until April 30. In the notice, the NTA reminded taxpayers that owned or sold crypto in 2020 to include the information in their tax return form. According to the agency, failure to comply will result in paying additional tax.
The NTA said that it identified more than 70,000 individuals that owned crypto in 2020 but in reality, this number is likely higher. Last year, the estimated number of crypto users in Norway was between 190,000 to 235,000 with about 4700 of them filing tax returns. According to the NTA senior adviser, Marius Johansen believes that the gap is due to the fact that some owners mistakenly assume that crypto is pre-filed in the tax return. He added that people will now have to start taking responsibility for filing their earnings and losses. Norway has a 22% tax rate for crypto earnings so if taxpayers suffered losses on their investments they can now provide the proof to receiving tax deductions:
“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.”
At the same time, the NTA warned the taxpayers that their crypto holdings are not anonymous because transactions are visible, contrary to popular belief. According to Johansen, the agency is now watching the digital assets space and already identified thousands of people already failed to report their taxes properly.
As recently reported, The Korean government finalized the decision to levy taxes on the BTC capital gains whose ruling was in line with the growing acceptance of crypto and other taxable financial tools. The law will take its due course from 2022 but in the meantime, citizens of Korea devised many schemes to evade taxes using BTC.