Purchases of digital currency
If you've purchased digital currency such as bitcoin, you must declare it in your tax return. You can read more about how you should assess the value here.
What you must do
Purchases of digital currency have no tax consequences at the time of purchase.
You should not declare the costs attributable to the purchase until you sell, so when you sell your digital currency, you must know how much you paid. You should therefore keep documentation showing:
- Date of purchase
- Transaction costs
- Market value as of the date of purchase. Use the exchange rate of the market place where you purchased the digital currency. If it's difficult to obtain exchange rates/documentation from the provider, a number of organisations offer historical exchange rates for the most common currencies.
If you used a different digital currency as payment, this currency will be realised for tax purposes. You must then follow the procedure described in the next item to declare any gain or loss on the digital currency that you used as payment.
Your broker/exchanger can tell you how much bitcoin and other digital currency you've purchased and the relevant purchase dates.
Each unit of a digital currency has an input value. If you purchase the same digital currency at different times and at different prices, the units will have different input values.
The input value for a unit is the price you paid at the time of purchase including transaction costs. You must declare the value in Norwegian kroner using the exchange rates applicable as of the date of purchase.
Input value in Norwegian kroner = Number of digital units * exchange rate for the digital currency * USD exchange rate + (transaction cost * USD exchange rate if the transaction cost is in USD)
- You purchased 1.32 bitcoins on 13 October 2020
- The bitcoin exchange rate at the time was USD 11.471,38
- The USD/NOK exchange rate was 9.1561
- The transaction costs per transaction were USD 3.
Input value in Norwegian kroner: (1,32*11.471,38)*9.1561+(3*9.1561) = NOK 138 671,16
If you own digital currency at the end of the income year, you must declare the market value as wealth in your tax return.
There are two ways you can enter gain/loss in the new tax return: You can list every item individually, or you can provide an overview.
Log in to the tax return and select the topic Finance – Virtual currency/cryptocurrency. You’ll get information and guidance as to what and how to proceed when you’re logged in. There are help texts for every field.
A tip is to add fields for currency if you want to list income and wealth for example in USD (American Dollars) or EUR (Euros).
You do not need to send us any documentation, but you must be able to present documentation if we ask for it.