Regulators all around the globe are becoming keen on tracking the massive profits that cryptocurrency investors are making. Over the past year, crypto prices have soared high enough to draw mainstream attention. As such, people are flocking into the market in hopes of massive gains. Like many others, regulators in Norway have now warned investors that they must disclose their crypto holdings.
According to reports, the Norwegian Tax Administration (NTA) has recently issued a warning to retail crypto investors regarding the April 30 deadline for filing tax returns. The notice reminded taxpayers who sold crypto assets in 2020 to declare this information while filing taxes. Per the notice, failure to do so would result in the taxpayer “paying additional tax.”
So far, the tax agency has identified nearly 70,000 individuals who owned cryptocurrencies in 2020. However, this number could be higher considering last year, where the estimated number of crypto users in Norway was in between 190,000 and 235,000. But only 4,700 of them having filed tax returns.
According to Marius Johansen, senior advisor at NTA, this gap could be “due to the fact that some crypto owners mistakenly assume that cryptocurrency is pre-filled in the tax return.” He went on to add that investors must take responsibility and file their profits and losses.
The nation imposes a 22% tax on crypto gains. However, if investors suffer losses on their investments, they can provide required proof and receive 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,” added Johansen.
Meanwhile, the NTA has also warned crypto holders that cryptocurrency holdings are not completely anonymous as crypto transactions are “more visible than many people think.”
Per Johansen, the tax agency is keeping a close watch on the crypto industry and has already identified “tens of thousands of people” who have failed to report their taxes previously.
Over the past few months, several regulators across the globe have issued warnings regarding the disclosure of crypto holdings. As previously reported by The Daily Chain, the Spanish tax agency sent 14,800 warning letters to Spaniards who haven’t disclosed their crypto holdings while filing taxes.