Possession of cryptocurrencies must be reported to the tax authorities for hokkaido inu. It is therefore a misunderstanding that one does not have to pay tax on cryptocurrencies, because there are no laws and regulations about it. Because even though cryptos are not legal tender, crypto is still taxed – because the Dutch government sees the cryptocurrency as an asset. We have listed the most important details for you.
Belasting op cryptocurrency
Let’s start simple: the value of cryptocurrencies falls into box 3 for the private individual, just like savings and gold, for example. This concerns the euro value of all cryptocurrencies together, on the reference date of January 1 of that year. For the tax return for 2021, that is January 1, 2021. A tip for crypto owners is therefore to take screenshots of the crypto currency in wallets and the exchange on New Year’s Day!
Taxation on crypto: valuation on the profit and loss account
Entrepreneurs who are paid in cryptocurrencies must convert this to euros and count that amount as part of the turnover. When exchanging cryptocurrency, a profit or loss can be made, which is reflected in the profit and loss account. If there are still cryptocurrencies on the balance sheet date, they must be valued at cost price or lower market value. The same applies if the BV is paid in crypto currency.
Call the bank and ask your questions about crypto
Because the value of Bitcoin and other cryptocurrencies has soared, when individuals want to convert their profits into euros, they may have problems with the bank. Banks generally do not take a clear position on this. Suppose: someone sells one Bitcoin through a Dutch broker or exchange and then withdraws it in euros and then transfers it to a private account; alarm bells can go off at that bank. They are obliged to report amounts in excess of EUR 10,000, but they also monitor risk-based transactions. It may therefore be wise to inform the bank in advance of what is about to happen – and to ask whether or not this could cause problems.
Also inform the tax authorities about your cryptos
The same applies to the tax authorities. Explain that you have always neatly indicated how much value there was in cryptocurrencies and that it has now risen sharply, for example. The prices are also sometimes tenfold, so that changing value addition won’t be much of a problem. It is also extremely important to have a sound administration about your cryptos: where was what was bought, and where was what was traded. So make sure your 2021 crypto tax is in order too!
Ban on business buying and selling cryptos
Incidentally, banks often adopt a moderate attitude towards private individuals. It is different with companies. For example, Rabobank recently made it explicit that business customers are not allowed to buy and sell cryptocurrencies. In case of violation, the account will be canceled. The United Bitcoin Companies Netherlands (VBNL) has filed a complaint with the Netherlands Authority. For Consumers and Markets (ACM) for alleged abuse of power. Rabobank indicates that the risk of money laundering with cryptocurrencies. Is too great and criminal activities. Would also be easier to finance. This is while Dutch brokers and exchanges are also gatekeepers and have had to meet. The same requirements as a bank since the implementation of the Money Laundering and Terrorist Financing (Prevention) Act.
Blockchain tax authorities
It is also striking that the Tax and Customs Administration is developing more specific rules for blockchain-related assets. For example, it may be that a private individual is mining. This contributes to the security of the crypto network and a reward is paid in crypto for this. The revenue from mining does not need to be declared unless it exceeds the cost. If that is the case, there may be income from other work or profits from business. And these incomes must therefore be declared in the tax return. Even if mining is a day job, that income is seen as income from other work. Or as profit from business and must still be declared in the tax return.
Why do people still want to mine? On the one hand, perhaps for privacy reasons: self-mined cryptos have never been anywhere, they are assigned to the miner when they are created, so they are very ‘private’. On the other hand, it can be attractive to be able to speculate on future price increases.