Ahead of the Upcoming Return, Norwegian Authorities Request Crypto-Users to Declare Earnings
In Norway, the 30th of April is the last date for Norwegian citizens to file for tax returns. Before the date arrives, the authorities from Norway have issued a notification/warning for the cryptocurrency traders. The notification has instructed the cryptocurrency traders to comply with the same deadline. They are also required by the Norway authorities to file their tax returns before the deadline.
The Norwegian authority that has issued the warning for the cryptocurrency traders in Norway is the Norwegian Tax Administration. The particular warning notice was issued by the administration on Wednesday, April 21, 2021.
In the warning, people who have sold, purchased, or traded in cryptocurrencies have been intimated that they must file their tax returns for the year 2020. The Norwegian Tax Administration has given clear instructions that if a person does not file their tax returns for cryptocurrencies, they may end up paying more taxes.
The Norwegian Tax Administration also clarified why they are issuing warning letters on the matter. The NTA has claimed that there are many investors and traders in the cryptocurrency industry from Norway since 2019. However, only 2% of the total cryptocurrency investors and traders filed their tax returns for cryptocurrencies in 2019.
The administration revealed that back in 2019 there were more than 235,000 active Norwegian traders and investors in cryptocurrencies. However, roughly 4,700 users declared their cryptocurrency tokens/holdings and filed tax returns against them.
Marius Johansen, a senior advisor at the NTA talked about the lack of cooperation from Norwegian crypto-users in terms of tax returns. He stated that there is a very common but wrong perception found among cryptocurrency users in Norway.
The majority of the Norwegians are under the impression that the Government of Norway has pre-filled the cryptocurrency section for tax returns. This is something that cryptocurrency investors and traders need to declare on their own.
Johansen stated that now they have issued an official intimation for the citizens to file their crypto-tax returns, they would not be disappointed. Before this, it was just a matter of users being unaware of the actual process.
Now that things have been clarified for them, there should not be any confusion in regards to the filing of tax returns. They are confident and have full faith in their citizens that they will comply with the regulation and not break it at all.
According to Norwegian law, traders and investors in cryptocurrencies are required to pay 22% taxes on their gains from cryptocurrency trading and investment activities. The taxation percentage in Norway for cryptocurrencies is exactly the same as in the United States of America.
The NTA has also warned the crypto investors and traders who are deliberately hiding their cryptocurrency assets, thus, filing no tax returns. The Norwegian authorities have warned such users that they are well aware of their identities and will go after them if they do not comply with the regulation.