Increase in the number of taxpayers reporting crypto assets in their tax returns

The number of individuals reporting cryptocurrency holdings in their tax returns increased by more than 30 per cent over the past year, according to newly released figures from the Norwegian Tax Administration.

According to data from the tax returns for the 2024 income year, more than 73,000 individuals reported owning cryptocurrency. This represents an increase of 30 per cent compared with the previous year. By comparison, fewer than 10,000 individuals reported crypto assets in their tax returns in 2019.

“It is encouraging to see that more people are reporting their cryptocurrency holdings and thereby ensuring that their tax liabilities are assessed correctly. We have implemented several measures in recent years to increase compliance, and we can see that these measures are having an effect,” says Director General of Taxation, Nina Schanke Funnemark.

The figures also show that Norwegian taxpayers reported cryptocurrency holdings with a total value of NOK 40 billion in their 2024 tax returns.

May still report

Cryptocurrency is not tax-exempt, and any holdings owned at year-end must be reported in the tax return. In addition, gains are taxable, while losses are deductible. Last year, Norwegian cryptocurrency investors reported gains of NOK 5.5 billion and losses of NOK 2.9 billion.

“Many people hold only small amounts and may believe that it is unnecessary to report them in their tax return. However, all holdings must be reported, regardless of value,” says Funnemark.

Individuals who own cryptocurrency but fail to disclose it in their tax returns may be subject to additional tax penalties.

Most taxpayers reporting cryptocurrency for the first time disclose relatively modest amounts. However, a small number of individuals hold substantial crypto assets, and audits conducted by the Norwegian Tax Administration have also uncovered significant amounts of unreported gains and wealth.

“It is possible to amend information submitted in a tax return up to three years after filing. By correcting the information voluntarily before the Norwegian Tax Administration initiates an audit, taxpayers may avoid additional tax penalties,” says Funnemark.

The Tax Administration receives more information

From 2026, providers offering cryptocurrency exchange and custody services will be required to submit information to the Norwegian Tax Administration through a third-party reporting regime.

This will provide the tax authorities with a new and improved source of information, which will be used, among other things, to verify the information reported in tax returns.

“This is an important step towards more accurate taxation of digital assets. As these measures are implemented, we will gain a much clearer overview of who owns crypto assets, both in Norway and abroad,” says Funnemark.

Source: Norwegian Tax Administration