Unreported Crypto Gains of €30 Million Uncovered by Finnish Tax Administration in 2023

Overview

Finland’s Tax authority has uncovered profits from sales of unreported crypto gains in 2023, amounting to €30 Million ($31.9 million). As a result, the EU nation has mandated reporting of income from the sale of mining digital assets.

Tax Supervision and Reporting

Per a report from a local media outlet Verkkouutiset, the authority has asked those who invested in virtual currencies to pay ten million euros in capital income tax following the unreported tax gains last year.

Impact and Compliance

Individuals who have not declared their income are mandated to pay a tax increase and late penalties. Failure to comply may lead to criminal sanctions.

Statistics and Trends

According to the findings, a total of 9,800 customers reported receiving crypto income in 2022, a decrease from 16,000 customers in 2021.

Increased Oversight

The Tax Administration is receiving more information from crypto exchanges regarding the transactions of Finnish customers, aiming to enhance compliance.

Compliance Reminder

If you received income from the use or mining of virtual currencies in 2023, you must declare it with a pre-filled tax return.

Taxation Details

The income from cryptos is taxed as capital income, while cryptos received from mining are taxed as earned income. Losses from virtual currency sales should also be declared for taxation.