I invested in a contract for difference (CFD). How do I report the profits on my tax return? Can I deduct the losses?

Note that CFDs are not crypto assets and their tax treatment is different from that of profits from crypto assets. The rules on capital gains tax are not applied to CFDs, and losses cannot be deducted from profits.

If you make a profit on a CFD, it will be taxed as capital income. The tax rate for capital income of up to €30,000 is 30%, and the tax rate for any income exceeding that is 34%.

Losses from CFDs are not taken into account in tax assessment in any way, not as capital losses nor as tax-deductible expenses.

Please note that in the taxation of CFDs, every transaction will be processed independently. This means that any profits made from trading CFDs will be taxed as capital income and that losses from trading CFDs cannot be deducted from profits. If you are trading CFDs, you can therefore lose the capital you have invested and still be liable to pay tax on the profits you make.

File your income on the pre-completed tax return

Add up the profits you have made on CFDs and report the amount on your pre-completed tax return in MyTax under Foreign income – Other foreign capital income. If you file on paper, use Form 16B Statement on foreign income (capital income).

Note that losses from or expenses for CFDs need not be filed on the tax return because they cannot be deducted from the profits.

The Tax Administration receives information on foreign-sourced income and supervises their tax filing.

Read more about the taxation of derivatives (in Finnish and Swedish, link to Finnish)

Read more about automated exchange of information (in Finnish and Swedish, link to Finnish)