As you already know, Bitcoin (BTC) is still a relatively new phenomenon. And this also applies to our friends from the tax office. The legislature has so far not considered Bitcoin (and therefore all other cryptocurrencies) as a means of payment and this has some consequences. Consequences that we will try to explain to you here. At Belastingdienst.nl you can find in the category “Work and income – cryptocurrencies”:
“Cryptocurrencies are digital means of exchange that do not involve a (formal) central counterparty, such as a bank. Most cryptocurrency transactions take place through so-called exchange platforms. There you can buy cryptocurrencies or exchange them for other cryptocurrencies for a regular fee. You can also get cryptocurrencies through mining. “How you declare cryptocurrencies depends on your situation.”
Then there are several options to choose from, specifying whether you are an individual or a business and if and how you acquired this cryptocurrency.
You are an individual and you have cryptocurrencies
You have acquired this cryptocurrency in one way or another, either by purchasing it or by mining for example. In the first case, you need to enter this information in the so-called box 3. Then enter the value of the cryptocurrency on January 1 of the corresponding year. This does not mean that you have to pay taxes on your property. It depends on your total assets. In 2020 you do not have to pay property tax for the first 30,846 euros. From 2021, this amount will increase to 50,000 euros. If you are married or cohabiting, this amount will be doubled. If you suspect a higher amount, it is a good idea to request an interim evaluation which can then be paid in installments.
You are an individual and you are mining or trading cryptocurrencies
Only when you really have a profit left over from the necessary mining-related expenses should you declare that income from another job or profit from a business in your tax return. Cryptocurrency trading is considered to be trading with other currencies. The revenue of this speculation should not refer to you, only the price gain.
You are an individual and you receive (part of) your salary in cryptocurrencies
In this case, there is a salary in kind and your employer must convert the encryption into euros when you receive it.
You are an income tax entrepreneur and you are paid in cryptocurrencies
The goods or services you provide are converted into euros. These are part of the turnover. If you buy cryptocurrencies as an entrepreneur and do it within the normal course of business, they are part of your business assets. In other cases, these purchases belong to your private assets and you must list them in box 3.
You are a sales tax entrepreneur and you are paid in cryptocurrencies
As you would be an entrepreneur for income tax purposes, you have to convert the amount into euros and declare it in the VAT return.
Your company mines and trades cryptocurrencies
All mining and marketing results take place within the company. You must include the results in the profit and loss account.