- 1. Is there a specific legislation issued for the taxation of crypto-assets or do general national tax law principles apply because the tax legislator has not regulated this so far?
- 2. How is the exchange of crypto-assets for a conventional FIAT currency (e.g. USD, EUR, GBP etc.) taxed?
- 3. Is taxation on the exchange of crypto-assets for goods/services or for other crypto-assets (e.g. BTC to ETH) the same as for conventional FIAT currency (e.g. USD, EUR, GBP etc.)?
- 4. When do transactions with crypto-assets performed by individuals start to qualify as a professional activity and what is the tax regime in such case?
- 5. Is it possible to offset losses made on: a) crypto-assets on gains of crypto-assets; b) other income from other activities with crypto-assets; c) another category?
- 6. What is the time frame to offset losses?
- 7. Are Non-Fungible Tokens (NFTs) treated the same way as crypto-assets? If not, please describe the differences.
- 8. How is mining taxed?
- 9. How is staking taxed? Are there differences in the taxation of the validator and the delegator?
- 10. Are there any other events/models for individuals earning income from activities with crypto-assets that might trigger tax (e.g. farming, futures, lending, liquidity pools, airdrops, hard forks, self-employment income, employment income, in crypto-assets funds etc.). If yes, how are these events/models taxed?
- 11. Are there any national tax law-specific monitoring, documentation and declaration requirements? If yes, what are the requirements?
- 12. Is there any information about the implementation of the EU DAC-8 directive or the OECD Crypto-Asset Reporting Framework (CARF) in national tax law?
- 13. Are there any other specialities regarding the taxation of crypto-assets (with the exception of VAT)?
jurisdiction
1. Is there a specific legislation issued for the taxation of crypto-assets or do general national tax law principles apply because the tax legislator has not regulated this so far?
There is no specific tax legislation. General principles apply.
2. How is the exchange of crypto-assets for a conventional FIAT currency (e.g. USD, EUR, GBP etc.) taxed?
Any gain on the exchange is taxed under Norwegian law as a capital gain at 22%. Losses are generally deductible.
3. Is taxation on the exchange of crypto-assets for goods/services or for other crypto-assets (e.g. BTC to ETH) the same as for conventional FIAT currency (e.g. USD, EUR, GBP etc.)?
Yes.
4. When do transactions with crypto-assets performed by individuals start to qualify as a professional activity and what is the tax regime in such case?
Professional activities are taxed differently to casual trading. Gains derived by casual traders are generally subject to 22% taxation. Professionals would be subject to up to 51% taxation. A casual trader becomes taxable at 51% once that person reaches a volume of trades and activity that amounts to “professional activity”. Generally, this also includes a requirement that the activity is capable of making net profits. The number of trades and the amount of required effort and equipment would be relevant factors in this assessment.
5. Is it possible to offset losses made on: a) crypto-assets on gains of crypto-assets; b) other income from other activities with crypto-assets; c) another category?
- yes
- yes
- in general, yes.
6. What is the time frame to offset losses?
For individuals not engaged in professional trading, losses would be recognised within the tax year in which they occur. Professional traders could, in principle, be eligible to carry forward any net losses that exceed the taxable income indefinitely.
7. Are Non-Fungible Tokens (NFTs) treated the same way as crypto-assets? If not, please describe the differences.
In general, yes.
8. How is mining taxed?
Crypto-currency mining activity should, provided that all the conditions are observed, fall into the category of professional activity. Therefore, income derived from such activity may be taxed as professional income. Otherwise, net income derived from mining activities should be taxed as ordinary capital gains at 22%.
9. How is staking taxed? Are there differences in the taxation of the validator and the delegator?
Any net benefit (i.e. crypto-assets gained from staking) is taxable. Losses would be deductible.
10. Are there any other events/models for individuals earning income from activities with crypto-assets that might trigger tax (e.g. farming, futures, lending, liquidity pools, airdrops, hard forks, self-employment income, employment income, in crypto-assets funds etc.). If yes, how are these events/models taxed?
Any net benefit arising from such activities would, in principle, be taxable at 22% under Norwegian tax law. The taxation would be on a net capital income basis, generally subject to 22% taxation for Norwegian individuals. If the trading amounts to “professional activity”, any net profit may be taxable at up to 51%.
11. Are there any national tax law-specific monitoring, documentation and declaration requirements? If yes, what are the requirements?
As of writing, there are no specific declaration requirements outside of mandatory reporting in annual tax returns.
12. Is there any information about the implementation of the EU DAC-8 directive or the OECD Crypto-Asset Reporting Framework (CARF) in national tax law?
Currently, no.
13. Are there any other specialities regarding the taxation of crypto-assets (with the exception of VAT)?
No.