Crypto Tax Filing Guide Netherlands 2023
Are you trying to figure out your crypto taxes before the Belastingdienst deadline? Accointing by Glassnode is a crypto tax and portfolio tracking tool you can rely on to avoid any tax reporting mistakes. In this step-by-step guide, we cover everything you need to know on how to generate your crypto tax report with Accointing and what to do next.
Last Updated: May 29, 2023
Step 1: Connect Your Wallets and Exchanges
record of all your transactions before, that’s okay. You can sign up for Accointing now and begin by importing all your wallets and exchanges into the platform. You can do this via API keys, a public address, or a CSV file.
Head to the "Wallets and Exchanges" tab and select the ones you want to import. Follow the instructions to connect your account, and you’ll be done in a minute. Before proceeding to the next step, select the proper tax settings based on your jurisdiction - consider the disposal and tax method.
Step 2: Review Your Transactions
After connecting your wallets and exchanges, Accointing will automatically import your transaction history. Go to the "Transactions" tab to review your transactions and ensure that everything is accurate. You have the option to add any missing transactions manually.
To calculate your cryptocurrency taxes correctly, it's crucial to verify that the balances displayed on the platform match your real balances to guarantee the accuracy of the data imported and to ensure that no wallets or transactions are missing for the platform. This will help you avoid discrepancies and potential tax reporting errors.
Step 3: Get through the Review Steps
Next, navigate to the "Review" tab on the left-hand side of the platform. This tab contains four essential sections: "Unknown currencies," "Identify internals," "Classify transfers," and "Missing funds". They’re crucial for ensuring that your crypto portfolio is accurately tracked and organized on the platform. By going through each section, you can identify any unknown currencies, classify transfers accurately, and ensure that no funds are missing. Here is a walkthrough of the process:
Unknown currencies: This step will confirm the legitimacy and accuracy of your assets. You can choose to add unrecognized coins as new currencies or ignore them if they are potential scams. Keeping this tab organized helps optimize your tax reporting and maintain a secure portfolio.
Identify internals: The platform will automatically flag any potential internal transactions between your own wallets. Always double-check you’re uploading all your wallets to avoid unnecessary tax expenses as these types of transactions are not taxable.
Classify transfers: Review and classify any unclassified transactions manually. Classifications are labels that explain the reason or method of a transaction and directly impact how the assets are taxed. It's crucial to understand the tax implications of your transactions and ensure that they are correctly labeled. By doing so, you can keep your crypto portfolio organized and optimized for tax reporting.
Missing funds: Find any missing funds and ensure that your portfolio is complete. If you can't find any missing data use the "Fix for me" option to reconcile the wallet by creating deposits or withdrawals. This feature adds a reconciliation transaction to guarantee that your portfolio is accurate.
Step 4: Generate a Tax Report
Once you have finished the Review process, you can generate a tax report by going to the "Reports" tab and selecting "Tax Report." Accointing will automatically calculate your gains and losses based on your transaction history and generate a tax report following your selected tax settings. The report will contain essential information, such as your total gains and losses, cost basis, and tax liability. With this report, you'll have all the necessary information to file your crypto taxes accurately and efficiently.
Step 5: File Your Taxes
So, before you're ready to file your crypto taxes, you should ensure that you've set the right tax settings, and reviewed your data for accuracy. If you've already generated your tax report and are ready to file, the following sections will guide you in submitting your 2022 Netherlands tax return.
How to File your Crypto Taxes in the Netherlands
On May 1st, it's that time of the year again. For crypto traders and investors, tax return filing also includes declaring crypto assets. Calculating your crypto taxes can require some effort, especially if you own multiple wallets and assets. Using a crypto tax tool can significantly reduce that time by doing the heavy lifting for you so you can file your taxes on time.
In principle, cryptocurrencies are subject to wealth tax (Box 3) and may sometimes be subject to income tax (Box 1). It's also worth noting that capital gains and losses from non-commercial trading are tax-free. On the tax return, the euro value of all cryptocurrency on January 1st, 0:00, must be declared. This can be difficult if there are many altcoins in the portfolio. Accointing solves these problems for you in one go.
It's important to ensure that you have registered correctly with Accointing, configured the correct tax settings, and verified the accuracy of all your data before submitting your crypto taxes. After downloading your Accointing report, you must file your tax return online through the Dutch tax authority's tax portal. This guide provides step-by-step instructions for reporting crypto taxes and complying with Dutch tax laws.
If you are a Dutch taxpayer, your taxable income is calculated based on the aggregate income from three different boxes:
- Box 1: This box includes taxable income from work, home ownership, and professional activities related to cryptos, such as active trading for profit and crypto mining.
- Box 2: This box is for taxable income from a substantial interest, such as business ownership.
- Box 3: This box is for presumed income from assets, savings, and investments. It includes cash and crypto assets, where you must enter the total value of your crypto holdings on January 1st.
Filing a tax return is relatively straightforward for retail investors who hold cryptocurrencies as personal assets and do not engage in frequent trading activities. It can be done online by login into MijnBelastingdienst, the online portal of the Belastingdienst:
- Once logged in, you need to check the box for "Overige Bezittingen" box under "Bankrekeningen en andere Bezittingen." This section applies to other assets under Box 3, including cryptocurrencies.
- In this section, once you've reached "Andere Bezittingen," you must declare the total value of your crypto assets on January 1st. Simply input the figure in the Box “Value 01-01-2022'' on the first page of your Accointing report.
If you have completed the above steps, you have successfully filed your crypto taxes with the tax authorities. If you are an individual taxpayer who does not own a business, trades crypto professionally, or receives your salary or a portion of it in crypto, you have no further tax obligations related to crypto.
Filing with a Professional
If you have a significant cryptocurrency investment, run a business, or have a complex tax situation, it is advisable to seek advice from an experienced tax expert. While Accointing can simplify the process of creating a tax report, the taxation of digital assets is a complex and rapidly changing area. A qualified professional can help you master the nuances of this field and correctly classify data for tax purposes.
Accointing’s Tax Report
Accointing provides a tax report with a summary of all tax-related cryptocurrency transactions for the selected tax year in full compliance with the guidelines of the Belastingdienst. The report is available in both PDF and Excel formats for convenience.
Page 1 – Summary
- The first page of your report contains the development of assets shown at the top of the tax report. Listed are the market value of your portfolio at the beginning of the tax period (01.01.2022) and the portfolio's market value at the end of the tax period (31.12.2022). The blue tile "Total Performance" shows the difference between the opening balance as of 01.01.2022 and the closing balance as 31.12.2022.
Page 2 - Portfolio Transactions
- This page provides an overview of all your transaction classifications divided into "Deposits," "Withdrawals," and "Other Portfolio Changes." Each of these classifications is accompanied by its respective values.
What is the deadline for filing crypto taxes in the Netherlands?
The tax deadline in the Netherlands is May 1, 2023, for those who have received a letter from the Belastingdienst informing them to file their taxes. The online tax portal MijnBelastingdienst opens on March 1, 2023, and taxpayers can start their tax declaration.
Can I apply for a tax postponement?
Yes, you can apply for a tax postponement in the Netherlands. The Dutch Tax and Customs Administration allows taxpayers unable to pay their taxes on time to request a postponement. You can apply for a tax postponement online through the Dutch Tax and Customs Administration's website or by submitting a written request. The decision to grant a postponement is based on your circumstances, and the Dutch Tax and Customs Administration will inform you of their decision. It's important to note that interest will still accrue on any outstanding taxes, even if a postponement is granted.
How is my wealth tax calculated?
The Dutch tax authorities have recently introduced a new method of calculating Box 3 taxation, which differs from the previous method. This new method is designed to reflect the actual return on investment better and is expected to lead to a more accurate assessment of tax liability. Taxpayers are allowed to choose between the old and new methods of calculation for the 2022 tax year. However, starting from the 2023 tax year, only the new method will be applicable. The new method is more advantageous for taxpayers with lower net wealth, as they will pay less tax under the new method compared to the old method. For taxpayers with higher net wealth, the old method may be more advantageous, although they may still choose to use the new method if they prefer a more accurate reflection of their actual returns.
The table below provides an overview of the three brackets and how the tax authority applies fictitious returns to calculate the income from your assets.
- If your assets fall into bracket 1 (up to €50,651), the Belastingdienst assumes that 67% of your assets are used for savings, and the remaining 33% is invested. They then calculate a return of -0.01% on 67% of your capital and a return of 5.53% on the remaining 33%.
- In bracket 2 (€50,651 - €962,351), a return of -0.01% was calculated on 21% of your assets and a return of 5.53% on 79% of your assets.
- If part of your assets fell into bracket 3, then a return of 5.53% was calculated on that entire part.
The new method for calculating income from savings and investments is based on the actual assets that you have declared in your tax return rather than the assumed assets used in the old method. The tax authority uses fictitious returns that are close to the actual rates of return for savings or investments, which can be found in the table provided.
- To calculate your income from savings and investments, you first calculate the return per type of asset using the rates of return from the table. Then you add the return on savings to the return on investments and other assets and reduce the total with the return on deductible debts.
- Next, you calculate your assets by adding up all the types of assets you have declared in your tax return minus your debts. You then use your assets to calculate the rate of return. After reducing your assets with the tax-free allowance, you have the basis for savings and investments. If you have a tax partner, you may divide the basis for savings and investments.
- To calculate the rate of return, you divide the calculated rate of return by your assets and multiply the result by 100%. Finally, you multiply the rate of return by your share of the basis for savings and investments to obtain your income from savings and investments. After calculating your income from savings and investments using the new method, you will be required to pay a 32% tax on that income. This tax rate remains the same as in the old method.
How are cryptocurrencies received as wages taxed?
Cryptocurrencies received as wages would be taxed as income for employment, which falls under Box 1 of the income tax return. More official information on cryptocurrency taxation can be found here.
What are the consequences if I fail to report my cryptocurrency taxes in the Netherlands?
If you don't file your cryptocurrency taxes in the Netherlands or file them after the deadline, you may be subject to penalties and fines imposed by the tax authorities. These penalties can include late payment fees and interest charges and, in some cases, may result in legal action. Filing your taxes on time is important to avoid any potential consequences.
The information contained in this guide is for general information purposes and does not constitute financial, investment, legal, or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.