Report virtual currencies

You can affect general attitudes with your own example. With the help of the information on this website, companies and individuals can more easily recognise what the shadow economy is and identify economic crimes. This website contains tips and examples of how you can act to protect yourself and the society against the harms caused by the shadow economy and economic crime.

While the use of virtual currencies in itself is not a crime, they do not have an official status parallel to that of money. The appreciation of a virtual currency is realised when it is sold or used and, under such circumstances, the appreciation is subject to capital taxation.

Private individuals and businesses

  • Be mindful of your responsibilities. Income from virtual currencies is taxed as either capital income or earned income and you can report it via the Tax Return on the Web service. When you sell virtual currency, such as bitcoins, report income from any capital gains under the item “Other capital income”. Income from mining must be reported under the item “Other earned income”. As the value of the virtual currency, use the exchange rate at the time of its use or mining.
  • Retain all documentation pertaining to purchases and sales involving virtual currencies. The Tax Administration will request an account of these transactions if necessary. The documentation must be retained for a period of six years from the end of the tax year.
  • Act in a timely manner. Avoid unpleasant consequences and the trouble of having to account for things later on by reporting the information on your tax return in a timely manner. The Tax Administration monitors and supervises reported information on virtual currency transactions. New phenomena such as virtual currencies can involve the grey economy, but often the issue is that the party responsible for declaring the information is unaware of what needs to be declared. The Tax Administration applies enhanced tax monitoring measures to parties whose tax returns are observed to have deficiencies. The monitoring and control measures utilise the available comparison information.