Last year, 48,155 people reported entering their tax return that they own cryptocurrency. The previous year the figure was 43,440.
“We know that there are far more people who actually own cryptocurrency. Remember that you yourself must enter information about cryptocurrency in your tax return,” said Nina Schanke Funnemark, Director of Taxation, in a press release.
The number of people nationwide who included information about virtual assets in their tax return rose to around 48,000 people in 2022 from around 45,000 in 2021. By comparison, the figure for 2020 was only about 15,000.
“Over time, we have seen a sharp increase in the number of people reporting that they own cryptocurrency,” Nina Schanke tells Funnemark.
There are several circumstances that have led to more people reporting cryptocurrency in their tax returns since 2020. Both increased focus on cryptocurrency taxation and sharp fluctuations in cryptocurrency rates have been important drivers. But the improvement over time notwithstanding; the darkness figures are still large. The Tax Administration's own estimates suggest that only 15 percent of those who own cryptocurrency state this in their tax returns
There are no separate tax rules for cryptocurrency. In tax terms, cryptocurrency is an object of wealth. That is, if you sell cryptocurrency at a profit, it is taxable, and if you sell at a loss, it is deductible. You will also need to list what you own of crypto in your tax return so that the figures for your wealth will be correct.
“Many of the people who do not raise cryptocurrencies like to have small values, perhaps they have just tested out what it is like to buy and own crypto. But all cryptocurrency trading should be listed in the tax return, regardless of how much it is worth, the tax director says.
If you own, or have bought or sold cryptocurrency during 2023, this is something you will need to include in your tax return before the deadline expires. These are not pre-filled numbers,” says Nina Schanke Funnemark.
The tax rate on income from gains is 22 percent.
The Tax Director also reminds that even if you have filed your tax return, you can still make changes, both in this year's tax return and for previous years.
Remember to deliver it again. You can make changes three years back in time,” says Schanke Funnemark.
The tax administration has a separate expert group that works purposefully with cryptocurrency. Among other things, they examine why many have not previously reported on their tax return as obligated.
“We think this may be because some crypto owners mistakenly assume that cryptocurrency is pre-filled in their tax return, and don't think about the fact that they themselves have to report this. Our experience is that most people want to follow all laws and regulations, and we want to help those who invest in crypto to report this properly,” says Schanke Funnemark.
Others may have assumed that owning, buying and selling cryptocurrency is anonymous, and that they can get away with taxes if they don't report it to taxation. It can cost you dearly, says the tax director:
— You are obliged to state this in your tax return, and you risk additional tax if you hide information from the Tax Administration.
The Swedish Tax Administration has learned in recent years that even children and young people can have large crypto values.
The tax authorities do not have good figures on the scope, as these values must usually be stated in the parents' tax return until the age of 17. The challenge is that parents are not necessarily aware that their child owns cryptocurrency. We have seen cases where it has come to light by chance that the teenager in the house was sitting on values in the million range.
On the other hand, children and young people's own relationship with taxes is usually limited to having a free card or a tax card in connection with part-time or summer work.
“Although it is often not a conscious choice among young people that these digital values are not given for taxation, we see that in the long term this can help create attitudes among a younger generation that tax is not so important,” says Nina Schanke Funnemark, Director of Taxation, and continues:
“Our call to parents is: talk to your child about taxes, and ask if she or he owns crypto assets. And to everyone - both young and old - the advice applies to contact the Tax Administration if you have any questions.
You must self-report cryptocurrency on your tax notice.
In the tax return there is a separate information field where cryptocurrency should be filled in.
If you have sold cryptocurrency at a loss you can get a deduction for it, but you need to be able to document both the entry value and the sale price as best as possible with information from the crypto exchanges.
It is important to make sure that the total result of all transactions is reported (gain/loss) — not just the total amount of cryptocurrency you own.
For three years after the filing deadline, you have the opportunity to change your data and resubmit your tax return. The deadline for amending the tax return for 2020 is April 30.
Last year, 48,155 people reported entering their tax return that they own cryptocurrency. The previous year the figure was 43,440.
“We know that there are far more people who actually own cryptocurrency. Remember that you yourself must enter information about cryptocurrency in your tax return,” said Nina Schanke Funnemark, Director of Taxation, in a press release.
The number of people nationwide who included information about virtual assets in their tax return rose to around 48,000 people in 2022 from around 45,000 in 2021. By comparison, the figure for 2020 was only about 15,000.
“Over time, we have seen a sharp increase in the number of people reporting that they own cryptocurrency,” Nina Schanke tells Funnemark.
There are several circumstances that have led to more people reporting cryptocurrency in their tax returns since 2020. Both increased focus on cryptocurrency taxation and sharp fluctuations in cryptocurrency rates have been important drivers. But the improvement over time notwithstanding; the darkness figures are still large. The Tax Administration's own estimates suggest that only 15 percent of those who own cryptocurrency state this in their tax returns
There are no separate tax rules for cryptocurrency. In tax terms, cryptocurrency is an object of wealth. That is, if you sell cryptocurrency at a profit, it is taxable, and if you sell at a loss, it is deductible. You will also need to list what you own of crypto in your tax return so that the figures for your wealth will be correct.
“Many of the people who do not raise cryptocurrencies like to have small values, perhaps they have just tested out what it is like to buy and own crypto. But all cryptocurrency trading should be listed in the tax return, regardless of how much it is worth, the tax director says.
If you own, or have bought or sold cryptocurrency during 2023, this is something you will need to include in your tax return before the deadline expires. These are not pre-filled numbers,” says Nina Schanke Funnemark.
The tax rate on income from gains is 22 percent.
The Tax Director also reminds that even if you have filed your tax return, you can still make changes, both in this year's tax return and for previous years.
Remember to deliver it again. You can make changes three years back in time,” says Schanke Funnemark.
The tax administration has a separate expert group that works purposefully with cryptocurrency. Among other things, they examine why many have not previously reported on their tax return as obligated.
“We think this may be because some crypto owners mistakenly assume that cryptocurrency is pre-filled in their tax return, and don't think about the fact that they themselves have to report this. Our experience is that most people want to follow all laws and regulations, and we want to help those who invest in crypto to report this properly,” says Schanke Funnemark.
Others may have assumed that owning, buying and selling cryptocurrency is anonymous, and that they can get away with taxes if they don't report it to taxation. It can cost you dearly, says the tax director:
— You are obliged to state this in your tax return, and you risk additional tax if you hide information from the Tax Administration.
The Swedish Tax Administration has learned in recent years that even children and young people can have large crypto values.
The tax authorities do not have good figures on the scope, as these values must usually be stated in the parents' tax return until the age of 17. The challenge is that parents are not necessarily aware that their child owns cryptocurrency. We have seen cases where it has come to light by chance that the teenager in the house was sitting on values in the million range.
On the other hand, children and young people's own relationship with taxes is usually limited to having a free card or a tax card in connection with part-time or summer work.
“Although it is often not a conscious choice among young people that these digital values are not given for taxation, we see that in the long term this can help create attitudes among a younger generation that tax is not so important,” says Nina Schanke Funnemark, Director of Taxation, and continues:
“Our call to parents is: talk to your child about taxes, and ask if she or he owns crypto assets. And to everyone - both young and old - the advice applies to contact the Tax Administration if you have any questions.
You must self-report cryptocurrency on your tax notice.
In the tax return there is a separate information field where cryptocurrency should be filled in.
If you have sold cryptocurrency at a loss you can get a deduction for it, but you need to be able to document both the entry value and the sale price as best as possible with information from the crypto exchanges.
It is important to make sure that the total result of all transactions is reported (gain/loss) — not just the total amount of cryptocurrency you own.
For three years after the filing deadline, you have the opportunity to change your data and resubmit your tax return. The deadline for amending the tax return for 2020 is April 30.
