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Tax return 2024 & Bitcoin: This is what you need to know and prepare

Tax return 2024 & Bitcoin: This is what you need to know and prepare

Bitcoin (BTC) and other cryptocurrencies should not be left in the dark when filing your annual tax return. If you invest in digital assets, you must declare your assets in Box 3 (Assets, Savings and Investments). Dutch people have until May 1st to file their tax return. With this article we prevent you from being confronted with surprises.

Crypto tax

The Dutch government considers cryptocurrencies an asset and you are therefore required to declare them on your tax return.

As mentioned, Box 3 is the starting point. However, Box 1 (income from employment) can also apply if you derive your primary income from crypto, for example as a trader.

If you own crypto long-term and therefore fall into box 3, the total value on January 1st of the tax year is decisive. This is also known as the deadline.

The tax return logically refers to the previous calendar year. In your current tax return, you therefore state the value of your crypto coins as of January 1st of the previous year. To do this, simply use the price of the platform on which you purchased the coin in question.

A tip for crypto investors is to take a screenshot of your portfolio on this deadline as evidence of the value of your cryptos.

You are only liable to tax on your assets if you exceed the exemption amount of 57,000 euros

You do not pay taxes on the actual return achieved, but the tax authorities work with a so-called fixed return percentage. This estimates how much return you have theoretically achieved on your assets.

You then pay 36 percent tax on this fictitious return.

Don’t hide your Bitcoins

The abandonment of your crypto coins is your own responsibility. If you do not declare your cryptocurrency, the tax authorities will consider it “unhidden assets.” This can result in significant fines, up to three times the amount you would actually have to pay. In extreme cases, criminal prosecution may even result.

Therefore, it is important to be transparent. Even if the value of your investments is less than 57,000 euros, you must report this to the tax office.

Additionally, avoid a 7.5 percent tax interest by submitting your tax return before May 1st.

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