How to report gains and losses from virtual currencies in MyTax
You can report sales of virtual currencies in MyTax
a) one by one
b) at the same time for the whole year.
“Sales” mean that you exchange a virtual currency into another virtual currency or an official currency, or that you use virtual currencies to make purchases or pay invoices.
If you report full-year sales at the same time, note the following:
- Save a separate calculation of capital gains as an attachment, itemising all sales transactions of the year. For example, you can make your calculation of capital gains using the Tax Administration’s FIFO calculator. If you use the Tax Administration’s calculator, make a separate calculation for each type of virtual currency sold. For example, if you have bitcoins and litecoins, make separate calculations for them.
- If you have had sales that have generated both gains and losses during a tax year, you need to enter two separate calculations of capital gains in the MyTax input fields in addition to the attached file – one for sales that have generated gains and one for sales that have generated losses. As a result, losses can be deducted from gains in the correct order.
This is how to proceed:
- Select sales that have generated gains and sales that have generated losses separately from your calculation. If you use the Tax Administration’s FIFO calculator, you can, after calculating, see transactions that generated gains and losses in the top left corner of the table.
- Start by filling in a calculation of sales that generated gains in MyTax. Here, you can report combined sales of different virtual currencies that generated gains (in other words, you do not need to fill in a separate itemisation of bitcoins and litecoins, for example, in MyTax).
- Next, select Add new transfer and fill in a calculation of sales that generated a loss.
Do this in MyTax
Log in to MyTax (a new window appears)
First, go to Individual income tax and Pre-completed tax return 2023, then select Check your pre-completed tax return.
Click Check pre-completed tax return. Move on to step 4 of these instructions.
Your own information appears at the Background stage. Proceed to Pre-completed income and deductions.
If you have previously given some details of your sales of virtual currencies, they are shown here under Capital income. You can make corrections to the information or enter more data on new sales.
If the Pre-completed income and deductions stage is showing no information on virtual-currency sales or other transfers of property, continue to the Other income stage.
Scroll down to Capital income.
First, select Yes at Capital gains. Then, click the Add new transfer button.
Select the Virtual currencies section and enter the names of the virtual currencies.
Give the name or names of the virtual currency brokerage firm(s) under Name of buyer or other recipient.
(a) Giving details on one sale
- Enter the date when you exchanged a virtual currency into another virtual currency or an official currency, or when you used it to make purchases as Selling date.
- Enter the value of the virtual currency in euros at the time you used it or exchanged it into another currency as Selling price.
(b) The entire year’s selling totals
If you choose to give details on full-year total sales of virtual currencies at the same time, enter the data as follows:
- Enter the calendar year’s end date 31 December 2023 as Selling date.
- Enter the whole year’s total sales prices as Selling price (selling prices of transactions that generated gains in a separate itemisation and selling prices of transactions that generated a loss in a separate itemisation).
Go to Acquisition details and costs.
(a) When you give details on one sale
- Enter the date when you bought the virtual currency as Acquisition date.
- Enter the virtual-currency position’s value in euros at the time of purchase. This is the acquisition price.
- In addition, enter the amounts of any expenses that were related to the purchase in Property acquisition costs, and the costs related to the selling, if any.
(b) The acquisition details for the entire year’s selling totals
When you give details regarding your purchases of virtual currency related to the full-year sales, enter the following information:
- Enter the first day of the year — 1 January 2022 — as Acquisition date, even if you had purchase transactions over several years.
- Enter the total acquisition prices of all virtual currencies sold during the year as Acquisition price (acquisition prices of transactions that generated gains in a separate itemisation and acquisition prices of transactions that generated a loss in a separate itemisation).
- In addition, enter the Property acquisition costs – i.e. the expenses that were related to your purchases of virtual-currency positions. For example, enter the sum of all broker’s fees you had to pay. Correspondingly, fill in the Selling costs field, as necessary.
The calculation under Capital gain or capital loss appears, based on actual expenses or based on the deemed acquisition cost. This way, you can see two alternative amounts. The system will automatically select the one that is more favourable to you.
At the bottom of the capital gain calculation, first click the Add file button, and then select Attachment regarding virtual currencies as the type.
Save your calculation of itemised capital gains and losses from sales of virtual currencies as an attachment.
- Calculate the gains or losses one-by-one for each sales transaction, i.e. every time during 2023 when you exchanged a position of virtual currency into another position, virtual currency, official currency, or used it to make purchases, as the case may be.
- If the virtual-currency position you sold had been bought through many different transactions, you must calculate the resulting increase or decrease in value one by one, based on every purchase transaction.
- You can use the Tax Administration’s FIFO calculator to make the calculation. Save the file in PDF format because MyTax accepts no Excel files as attachments.
Note that if you made transactions that generated both gains and losses, you need to enter two separate calculations into the fillable fields in MyTax – one for sales that generated capital gains and one for those that resulted in losses. The reason for this is that the losses must be subtracted from the profits in a certain order of sequence. In other words, examine your calculation and select the sales that generated gains, and the sales that resulted in losses one by one.
Finally, click OK. The data-entry fields are now saved in MyTax.
Select Add new transfer whenever you need to add a new itemisation.