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

It is important to note that CFDs are not virtual currency, so the tax treatment is different from that of the gains and profits you may receive from virtual currencies. The tax rules on capital gains do not apply, and if you made a loss due to a CFD, you cannot subtract the amount of the loss from your profits.

If you make a profit on a CFD, it is taxed as capital income. The tax rate for capital income is 30% up to €30,000. If you earn more, the excess part is taxed at 34%.

Losses incurred from CFDs are not taken into account in taxation – not as capital losses nor as tax-deductible expenses.

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

File your income on a pre-completed tax return

Add up the profits you have made on CFDs and report this sum 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).

Instead, losses or expenses incurred from CFDs should not be filed on a tax return as they cannot be deducted from the profits.

The Tax Administration receives information on income from foreign sources and monitors that the details of these transactions are submitted to the Tax Administration.

For more information, see the Tax Administration’s detailed guidance on the taxation of derivatives (available in Finnish and Swedish)