Three reasons to choose an annual tax return with Efremtid.no
- We have extensive experience – we have been handling tax returns since 2005. This means we know how to help you achieve a favourable annual tax return.
- Everything is handled online – you do not need to come to our office. You only complete a simple form.
- We guarantee ongoing contact and support – we are available on working days from 9:00 to 21:00 by phone: +47 21 38 38 21. You can ask any question about your tax return, and we will do our best to respond reliably and efficiently.
1. What does the service include?
This service is only an add-on to the private annual tax return service. Without ordering this service, we will not be able to prepare the cryptocurrency tax return.
In addition to the standard tax return described above, the service includes**:**
- Entering information on the loss or gain from the sale of cryptocurrencies
- Reporting ownership of cryptocurrencies
- Information about the completion of the tax return and the дальнейшая procedure
- Support in case of additional questions
NOTE: The decision on whether deductions are allowed and the return is approved rests with the Norwegian tax office. The service only covers mediation between you and the tax office.
2. What information do we need?
Before providing the service we will ask you to complete a form. It will be sent by email after ordering the service. It is necessary in order to include all required information in the tax return.
To complete the form, you will definitely need to provide a statement, prepared by yourself or by a suitable programme (e.g. kryptosekken.no). This step must be carried out by you, because we understand how important the security of funds is in cryptocurrency and the importance of preventing unauthorised persons from accessing the wallet or exchange.
3. What do we add?
Loss from the sale of cryptocurrencies
If you sold cryptocurrencies at a profit or a loss, the difference is subject to tax or tax deduction.
The capital tax rate is 22%. For example: you bought BTC for 100 000 kr and sold it in the same year for 80 000 kr. A loss of 20 000 kr is deductible and reduces the tax by 4 400 kr. If, however, the sale had resulted in a gain, you would have had to pay tax.
Gains from trading currencies and cryptocurrencies, if you withdrew the given currency or cryptocurrency
When trading currencies and cryptocurrencies, you only need to report gains or losses from currency exchange in the given year. The value of currencies and cryptocurrencies held in foreign accounts must be entered in the tax return according to the exchange rate on 1 January of the year following the tax year. It does not matter whether it is a currency or a cryptocurrency; the reference is always the Norwegian krone. Let us take Bitcoin BTC and a few transactions carried out during the year as an example:
- 15 January purchase of BTC for 100 000 kr
- 30 April sale of 25% of the BTC held for 30 000 kr
- 15 May sale of 25% of the BTC held for 20 000 kr
- 12 December sale of 25% of the BTC held for 100 000 kr
- 31 December – 25% of BTC remained, with a value of 150 000 kr
The example is meant to be descriptive, which is why the division is into equal parts and there is only one purchase transaction. In the case of a larger number of transactions, the FIFO model is used. This means that we first calculate the difference between sale and purchase for the currencies bought earliest. Returning to the example:
- The BTC purchase does not cause any tax or changes in assets during the year
- This sale results in a gain of 30 000 – 25 000 = 5 000 kr
- This sale results in a loss: 20 000 – 25 000 = – 5 000 kr
- This sale results in a gain of 100 000 – 25 000 = 75 000 kr
- This fact creates assets of 150 000 kr; the earlier investment of 100 000 kr reduced the value of assets in the Norwegian account, which banks automatically record in the annual tax return
Ultimately, the following are entered in the annual tax return:
- Total gain from currency exchange: 75 000 kr
- Assets in BTC: 150 000 kr
Additionally, if we have an account in Poland or abroad and cash in a given currency, it must also be entered in the annual tax return. We enter asset values according to the exchange rate on 1 January of the year following the tax year. This applies to currency wallets as well as cryptocurrency wallets. This increases assets, which may result in wealth tax (above 1.7 million kroner, assets are taxed in Norway)