The new year has started again, which means that many people and companies have to file tax returns again. The tax authority will also be happy about additional money, but the authority has had to endure a lot of criticism in recent years. It turns out that this causes many people to pay way too much in taxes.
Many people pay too much taxes
This is the conclusion reached by Inspector General Bart Snels from the Ministry of Finance in an interview with AD. Of course, few people enjoy reporting their taxes. If no tax return is filed, the tax authorities will file taxes for that person. However, not everyone is qualified for this. which has led to unjustified fines in recent years.
It is not uncommon for people to lose track or forget to file a tax return due to circumstances. If you forget to file your tax return, the tax office will quickly impose heavy fines, but according to Snels, this is not justified. Many people get into trouble unnecessarily.
In addition, income and wealth tax does not apply to everyone, for example if you earn very little. In such cases, the tax authorities issue a tax assessment, after which you receive an automatic tax assessment. This can be very upsetting.
How to file a tax return as a crypto investor
You will also be taxed on your ownership of Bitcoin (BTC) and other cryptocurrencies, which are considered capital like other assets. Below is a compact step-by-step plan to calculate how much tax you have to pay on your crypto and other assets.
- Determine the value of your cryptocurrency: On January 1st of the tax year you must determine the total value of your cryptocurrency in euros. Use the cryptocurrency rate on that day to convert the value into euros.
- Increase the value of your assets: You add the value of your cryptocurrency to your other assets in Box 3, such as: B. Savings, stocks and other investments.
- Reduce your assets through any debts: If you have debts, you can deduct them from your total assets in Box 3. There is a threshold for debt; Only the amount above this threshold may be deducted.
- Calculate your taxable assets: Subtract the tax exemption limit (a certain amount on which you don’t have to pay taxes) from your total assets after deducting debts. The remaining amount is your taxable asset.
- pay taxes: You tax your taxable assets in Box 3. The tax office uses a fixed return percentage to estimate how much return you have theoretically achieved with your assets. You pay 31% tax on this fictitious return in 2023.
- Report: You enter the value of your cryptocurrency in your tax return under “Other assets” in field 3. You do this via the online declaration on the tax office website or via the tax declaration app.
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