Over 73,000 Norwegians declared cryptocurrency assets in their tax filings last year. This marks a 30 percent increase from the previous year. Norwegian crypto owners collectively held 40 billion kroner in digital currencies.
Tax Director Nina Schanke Funnemark welcomed the development in an official statement. She said authorities are pleased more people report their crypto ownership and ensure correct tax payments. The tax administration has implemented several measures in recent years to improve reporting compliance.
These 73,000 taxpayers collectively declared cryptocurrency worth over 40 billion Norwegian kroner (approximately $3.7 billion). Cryptocurrency holdings are not tax-exempt in Norway and must be included in annual tax returns.
Last year, crypto owners reported 5.5 billion kroner in gains and 2.9 billion in losses. Many people hold small amounts and might think reporting isn't necessary, Schanke Funnemark noted. But all cryptocurrency values must be declared regardless of amount.
Failure to report cryptocurrency ownership risks additional tax charges. The Norwegian Tax Administration has uncovered substantial amounts of undeclared crypto gains and wealth.
Taxpayers can amend submitted tax information for up to three previous years. Correcting omissions before the tax authority initiates controls helps avoid penalty taxes, officials confirmed.
The rising reporting numbers suggest Norwegians are becoming more aware of their crypto tax obligations, though many likely still underestimate what they owe.