Still Big Dark Numbers on Crypto Tax

The Norwegian Tax Administration estimates that between 300,000 and 400,000 Norwegians are now investing in cryptocurrency. But still, only 10% of these, or about 40,000 people, have reported their crypto investments in their 2021 tax returns.

August 16, 2022
Crypto tax
Society
Regulation
Still Big Dark Numbers on Crypto Tax

Tax Director Nina Schanke Funnemark is nonetheless pleased that things are moving in the right direction compared to 2020, when only 15,000 reported crypto investments in their tax returns.

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Information and control

The new figures were put forward in a panel debate during Arendalsuka, under the title “Hard against the hard, soft against the soft”. The title of the debate also reflects the Tax Administration's approach to crypto as a new area of investment, a combination of information and control.

- We first met on cryptocurrency in 2011. We are still working a lot on information, about this being taxable and on how taxpayers can fill in their tax returns correctly. Most recently yesterday, we sent letters to 3,000 taxpayers who we believe own crypto, asking them to re-check their tax return, said Marius Johansen, who heads the Tax Administration's crypto trade group.

Developing in the right direction

Johansen also presented for the first time figures for how many Norwegians have reported their crypto investments in the tax return for 2021. The number has increased greatly from about 15,000 to well over 40,000 in 2020. “We understand that the numbers are and should have been higher. But the development is positive. In 2020, less than 5% of those who probably own crypto provided information via their tax return, while this year the share is over 10%, Johansen said.

The Swedish Tax Administration estimates that between 300,000 and 400,000 Norwegians own cryptocurrency. This is in good agreement with other ANSLAs, a survey conducted by EY Norway and Arcane Research shows that 405,000 Norwegians probably owned cryptocurrency in the first quarter of this year.

The typical crypto investor

Despite the fact that there are still large dark figures in tax returns, the Tax Administration's survey provides an interesting insight into, among other things, who saves in cryptocurrencies. These are some facts from. The investigations:

  • Crypto has become the everyman's way. Norwegians across the country are now investing in crypto.
  • The breakdown by gender and age still confirms that the typical crypto investor is a man in his 30s. But the proportion of women has increased from 10% to 14% of crypto investors. By far the biggest change has also occurred in the under-25s group, where the number of crypto investors has increased by 400%.
  • The average size of crypto assets has decreased, something the Tax Administration believes is clouded by the fact that more people with small amounts of crypto have become better at disclosing their crypto investments.
  • Investors reported 8.8 billion in crypto gains in 2021, versus 1 billion in 2020.
  • The deductions are high, at NOK 3.4 billion, which the tax authorities are not only due to ordinary losses, but that Norwegians also lose money in the crypto market due to fraud and fraud
  • The crypto wealth of the 40,000 who have reported figures has increased from NOK 8 billion in 2020 to NOK 20 billion in 2021.

Own crypto to keep up

Marius Johansen of the Swedish Tax Agency also owns cryptocurrency, but not for speculating or investing. “These investments are linked to my job. It's as much because of the technology, which is interesting and exciting. If we're going to tax crypto, we need to realize what's going on. We can't just pretend to know the products. We need to try to understand the technology and how crypto works,” Johansen said.

Intriguing panel debate

Johansen's presentation was followed by a panel discussion in which many of the key corporate and financial directors in Norway participated. The panel discussion was attended by Pål Lønseth, CEO Økokrim Nikolai Nyrud Gobel, CEO Kaupang Krypto, Morten Søberg, Director of Community Liaison, SpareBank 1, Morten Baltzersen, Director Financial Supervisory Authority and Nina Schanke Funnemark, Skatteetaten Skatteetaten.

We'll come back with a closer look at this debate, where topics such as crypto, tax, crime, microservices, innovation and regulation were lined up. Follow Kaupr on Linkedin, Facebook and Twitter and here on the new online newspaper https://kaupr.io

‍

Still Big Dark Numbers on Crypto Tax

The Norwegian Tax Administration estimates that between 300,000 and 400,000 Norwegians are now investing in cryptocurrency. But still, only 10% of these, or about 40,000 people, have reported their crypto investments in their 2021 tax returns.

August 16, 2022
Crypto tax
Society
Regulation

Tax Director Nina Schanke Funnemark is nonetheless pleased that things are moving in the right direction compared to 2020, when only 15,000 reported crypto investments in their tax returns.

‍

Information and control

The new figures were put forward in a panel debate during Arendalsuka, under the title “Hard against the hard, soft against the soft”. The title of the debate also reflects the Tax Administration's approach to crypto as a new area of investment, a combination of information and control.

- We first met on cryptocurrency in 2011. We are still working a lot on information, about this being taxable and on how taxpayers can fill in their tax returns correctly. Most recently yesterday, we sent letters to 3,000 taxpayers who we believe own crypto, asking them to re-check their tax return, said Marius Johansen, who heads the Tax Administration's crypto trade group.

Developing in the right direction

Johansen also presented for the first time figures for how many Norwegians have reported their crypto investments in the tax return for 2021. The number has increased greatly from about 15,000 to well over 40,000 in 2020. “We understand that the numbers are and should have been higher. But the development is positive. In 2020, less than 5% of those who probably own crypto provided information via their tax return, while this year the share is over 10%, Johansen said.

The Swedish Tax Administration estimates that between 300,000 and 400,000 Norwegians own cryptocurrency. This is in good agreement with other ANSLAs, a survey conducted by EY Norway and Arcane Research shows that 405,000 Norwegians probably owned cryptocurrency in the first quarter of this year.

The typical crypto investor

Despite the fact that there are still large dark figures in tax returns, the Tax Administration's survey provides an interesting insight into, among other things, who saves in cryptocurrencies. These are some facts from. The investigations:

  • Crypto has become the everyman's way. Norwegians across the country are now investing in crypto.
  • The breakdown by gender and age still confirms that the typical crypto investor is a man in his 30s. But the proportion of women has increased from 10% to 14% of crypto investors. By far the biggest change has also occurred in the under-25s group, where the number of crypto investors has increased by 400%.
  • The average size of crypto assets has decreased, something the Tax Administration believes is clouded by the fact that more people with small amounts of crypto have become better at disclosing their crypto investments.
  • Investors reported 8.8 billion in crypto gains in 2021, versus 1 billion in 2020.
  • The deductions are high, at NOK 3.4 billion, which the tax authorities are not only due to ordinary losses, but that Norwegians also lose money in the crypto market due to fraud and fraud
  • The crypto wealth of the 40,000 who have reported figures has increased from NOK 8 billion in 2020 to NOK 20 billion in 2021.

Own crypto to keep up

Marius Johansen of the Swedish Tax Agency also owns cryptocurrency, but not for speculating or investing. “These investments are linked to my job. It's as much because of the technology, which is interesting and exciting. If we're going to tax crypto, we need to realize what's going on. We can't just pretend to know the products. We need to try to understand the technology and how crypto works,” Johansen said.

Intriguing panel debate

Johansen's presentation was followed by a panel discussion in which many of the key corporate and financial directors in Norway participated. The panel discussion was attended by Pål Lønseth, CEO Økokrim Nikolai Nyrud Gobel, CEO Kaupang Krypto, Morten Søberg, Director of Community Liaison, SpareBank 1, Morten Baltzersen, Director Financial Supervisory Authority and Nina Schanke Funnemark, Skatteetaten Skatteetaten.

We'll come back with a closer look at this debate, where topics such as crypto, tax, crime, microservices, innovation and regulation were lined up. Follow Kaupr on Linkedin, Facebook and Twitter and here on the new online newspaper https://kaupr.io

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