The Supreme Administrative Court, like the Tax Court, considers that bitcoin cannot be equated with a co-ownership or foreign currency. The sale of bitcoin must therefore be taxed in accordance with the provisions on other assets in Chapter 52. Income Tax Act, IL. Bitcoin can not be a so-called personal asset, which means that the overhead amount must be calculated according to the so-called the average method and that 70 percent of a loss may be deducted.
When Should I Declare My Cryptocurrency in Sweden?
sold cryptocurrency
exchange a cryptocurrency for one or more other types of cryptocurrency
exchange a cryptocurrency for a FIAT currency, eg USD, Kronor
paid with cryptocurrency when buying a product (for example a pair of shoes) or a service (for example a taxi ride)
lent out cryptocurrency
use cryptocurrency as a gaming bet
You report this on Enclosure K4 under section D, which you submit together with your income tax return.
How you are taxed If you have, for example, bought and sold cryptocurrency, you calculate your profit or loss as follows:
What you have paid (sales price) - what you bought for (overhead amount) = your profit or loss. You who have made a profit are taxed for the whole profit. You pay 30 percent in tax on your profits. If you have made a loss, it is deductible to 70 percent.
Cost Amount For Crypto Tax in Sweden
Your overhead amount is normally the amount for which you purchased your cryptocurrency. But depending on how you obtained your cryptocurrency, the overhead amount is calculated in different ways.
You need to be able to prove the overhead amount with, for example, receipts or original account statements from exchange companies. If there have been wallet addresses, the transactions in the blockchain must be consistent with the reporting of purchases, mining and sales of the bitcoin.
If you have acquired or received cryptocurrency on several different occasions, you must calculate an average overhead amount. The standard method, which uses 20 percent of the sales price as an overhead amount, may not be used when reporting cryptocurrency.
Example - buying and selling cryptocurrency
In 2017, Anela bought bitcoin on two occasions. On October 12, she bought 0.5 bitcoin for SEK 20,000 and on November 12, she bought another 0.2 bitcoin for SEK 10,000. On October 16, 2020, she sold 0.4 bitcoin for SEK 40,000. Anela shall report the sale in K4 under section D.
She makes an average calculation on the help form SKV2198.
Anela can either report her sales in the e-service Income Statement 1 or on paper form K4 under section D.
Report on form K4 section D
Under Number / Amount in foreign currency, Anela fills in 0.4. As a designation, she indicates Bitcoin. She also fills in the sales price (SEK 40,000), overhead amounts (SEK 17,143) and profit (SEK 22,857). At the bottom of the form, she sums up the total amounts.
Accounting in the e-service Income tax return 1
In the e-service Income Declaration 1, Anela looks up K4 - Other securities, other assets (capital investments, eg commodities, cryptocurrencies), etc.
Anela indicates Bitcoin as a designation. She also fills in the sales price (SEK 40,000) and overhead amounts (SEK 17,143). The e-service then calculates her profit automatically.
There is no possibility to fill in decimals in the e-service. Anela therefore rounds to the nearest integer and puts 0 in the box for Number. Anela then writes under Other information that she sold 0.4 pieces of bitcoin.
Examples - purchase, sale, purchase of goods
Eva does not conduct any business and as a private individual has carried out a number of different purchases and sales of bitcoin as follows:
Eva buys 10 bitcoin for SEK 10,000 and then buys another 10 bitcoin for SEK 50,000. In total, she has bought 20 bitcoins for SEK 60,000 and each bitcoin thus has an average overhead amount of SEK 3,000 (SEK 60,000 ÷ 20).
Eva sells 15 bitcoin for SEK 60,000 and the overhead amount is SEK 45,000 (15 x SEK 3,000). The profit will thus be SEK 15,000 (60,000 - 45,000). The remaining overhead amount for 5 bitcoin is SEK 15,000.
Eva buys another 5 bitcoin for SEK 25,000. The total overhead amount is now SEK 40,000 for 10 bitcoin, which entails a new average overhead amount of SEK 4,000 for each bitcoin.
Eva buys goods on the internet for SEK 2,000 and pays with 0.345 bitcoin. Eva thus sells (sells) 0.345 bitcoin for SEK 2,000. The expense amount is SEK 1,380 (0.345 x SEK 4,000) and the capital gain is thus SEK 620 (2,000 - 1,380).
Eva sells 5 bitcoin for SEK 15,000. The average overhead amount is still SEK 4,000 per bitcoin. This leads to a capital loss of SEK 5,000 (15,000 - 20,000).
Eva reports a total capital gain on Enclosure K4, section D of SEK 15,620 (SEK 15,000 + SEK 620) and a capital loss of SEK 5,000. The capital gain is taken up to 100 percent and the capital loss is deductible to 70 percent. There is no set-off on Enclosure K4, section D. The Swedish Tax Agency automatically reduces the capital loss to SEK 3,500 (5,000 x 70 percent) before it is deducted from the capital gain when calculating the surplus capital.
Example - switching between different cryptocurrencies
Samira does not conduct any business and as an individual has invested in bitcoin. She has since exchanged her bitcoin for litecoin. Switching from one cryptocurrency to another means that she must make a capital gain calculation. Samira has previously bought 10 bitcoin for SEK 100,000 and she exchanges these for litecoin. Her overhead amount for the bitcoin she exchanged for will thus be SEK 100,000. The sale price will be the value in Swedish kronor of the litecoin that Samira received at the time of the exchange. Samira must report this in the income category capital in Enclosure K4, section D.
Example - buying and selling bitcoin (simplified accounting)
Eddie does not run a business and has traded with bitcoin as a private person.
Eddie has bought 2 bitcoin for SEK 128,000. His average overhead amount for each bitcoin will be SEK 64,000 (SEK 128,000 ÷ 2). Eddie will then sell 0.01 bitcoin in 2020 on two hundred different occasions. His overhead amount for each sale will be SEK 640 (SEK 64,000 x 0.01). Some of the sales have led to profits and some to losses.
Eddie does not have to report each sale separately. He sums up his total sales price and his total overhead amount for the profit transactions he has made. He then fills in the sales price and the overhead amount in Enclosure K4 under section D. The difference is reported as a profit. He also fills in the total number of bitcoin he sold with a profit rounded to the nearest whole number. He then sums up his total sales price and his total overhead amount for the loss transactions he has made. He then fills in the sales price and the overhead amount in Enclosure K4 under section D. The difference is reported as a loss. He also fills in the total number of bitcoin he sold with a loss rounded to the nearest whole number.
The profit is taken up to 100 percent and the loss is deductible to 70 percent. There is no set-off on Enclosure K4, section D. The Swedish Tax Agency automatically reduces the loss to 70 percent.
Taxable Events For Cryptocurrency in Sweden
Here we have summarized various taxable events for which you are liable to pay tax. We at Kryptos are not responsible for the Tax Agency rules regarding the taxable events not matching our information. This is not tax advice, we therefore ask you to contact the Skatteverket for more information with questions or concerns.
Sale of Cryptocurrency in Sweden
Selling cryptocurrency in Sweden is a taxable event and must be declared as a capital gain.
Trade Crypto for Crypto
To trade crypto for crypto or crypto for stack coins (TUSD → BTC eller BTC → TUSD) is a taxable event and is taxed as a capital gain.
If you have invested in bitcoin then switch your bitcoin to ethereum. Switching from one cryptocurrency to another requires you to make a capital gains calculation. Samira has previously bought 10 bitcoin for SEK 100,000 and she exchanges these for ethereum. Her overhead amount for the bitcoin she exchanged for will thus be SEK 100,000. The sale price will be the value in Swedish kronor of the ethereum that Samira received at the time of the exchange.
Initial Coin Offering (ICO)
ICOs are taxed as sales. In case of successful sale, the overhead amount is the market value of the cryptocurrency that you used to participate.
Purchase of Goods and Services with Cryptocurrency in Sweden
Purchases of goods and services are taxed as sales and must be declared as capital gains.
Margin Trading
The realized gain or loss is taxed as a capital gain when the position is closed.
If you realized a profit, the cost base profit is applied after you have paid the capital gains tax. In the event of a loss, it works in the same way as if you sold your crypto for SEK 0, the loss is equal to your crypto's average cost base.
Buy Crypto
Buying crypto is not taxed, however, it is important to keep track of the price of the cryptocurrency at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Transfer Crypto Between Your Wallets
Transfers between different wallets do not need to be taxed. For your own sake, it is good to book your transactions. This will make it easier for you to calculate the overhead amount.
Lost or Stolen Cryptocurrency in Sweden
Lost, hacked or stolen crypto is not taxed. If you have made a profit on your crypto, the profit is taxed regardless. You can therefore not compensate for lost or stolen crypto against your winnings. You remove the relevant cost base from your calculations.
Give / Receive Crypto as a Gift
Giving away or receiving a crypto as a gift is not taxed. This also applies to donations, however, it must be taxed on sales.
Income From Other Activities (eg. Freelance)
Income from other activities such as work or a service must be declared as income tax. The cost basis for the crypto you received is the same value that you stated as income.
Rewards, Airdrops & Forks
Airdrops and Hardforks are counted as gifts and are not taxed. Only on sale should this be taxed and the cost amount should then be zero.
Mining Cryptocurrency in Sweden
If you as an individual have income from mining bitcoin and other cryptocurrencies, you must pay tax on the income. They are normally taxed as income from employment (hobby) but can exceptionally be taxed as income from business activities.
Lending of Crypto
Lending of cryptocurrency in Sweden is taxed as a sale and must be declared as a capital gain.
Interest
The interest is classified as income and must therefore be taxed as earnings. It is a bit unclear how it should be declared, in a conversation with the tax authorities we came to the conclusion that income from interest can be declared in the K4 form section D (see picture) and not in section 7.2 Interest income, dividends, profit from Enclosure K4 section C ( listed bonds, currency, etc.).
Loans against fiat
Borrowing FIAT currency, eg USD, Kronor, Euro in exchange for crypto is taxed as a sale and must be declared as a capital gain.
Closed loan
Closing your loan or taking back your crypto does not count as a taxable event and does not need to be declared.
Staking & Staking Rewards
Staking of a cryptocurrency is taxed as a sale and must be declared as a capital gain.
Staking rewards
Staking rewards are classified as an income and should therefore be taxed as a gain, just like the interest rate on a loaned crypto.
Closed staking
Ending your staking or taking back your crypto does not count as a taxable event and does not need to be declared.
Non-Fungible Token (NFT)
Purchase NFTs
Buying NFTs is not taxed, however, it is important to keep track of the price of the NFT at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Purchase of NFTs for crypto
To purchase an NFT with crypto (ETH → NFT) is taxed as a sale and must be declared as a capital gain.
Sale of NFTs
The sale of an NFT is a taxable event and must be declared as a capital gain.
Sale of NFT for crypto
The sale of NFTs for crypto is a taxable event and must be declared as a capital gain.
Sale of NFT for another NFT
A sale of NFT for another NFT is a taxable event and must be declared as a capital gain. It is important to keep track of the price of the NFT at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Cryptocurrency in Business
If you have received cryptocurrency as payment in your business, the subsequent change in value should normally be taxed as income from capital. However, this does not apply in businesses where the cryptocurrency is an inventory asset, for example if you run an external exchange business. In such cases, you must report the income as income from business activities.
Example - business
Olof sells goods in his web shop on the internet. He charges in bitcoin. Olof books each sale separately in Swedish kronor based on the value on the day he is paid in bitcoin. Since bitcoin does not constitute stocks in this type of business, Olof is considered to make his own withdrawal of bitcoin the moment he receives them.
In January, he booked sales income and VAT with a total of SEK 34,500 and during this period he received a total of 0.4 bitcoin, which he then takes out and then sells for SEK 36,000. This must be reported in the income category capital in Enclosure K4, section D. The sales price is SEK 36,000 and is reduced by the overhead amount that corresponds to the reported amount in the business, including VAT, ie SEK 34,500. The capital gain will be SEK 1,500.
Disclaimer
We at kryptos.io strive for the information to be correct in all respects. However, we can not guarantee this, and therefore can not take any responsibility for any losses caused by incorrect information on this web service. However, we are grateful for all remarks about inaccuracies. If you have found something that seems wrong, feel free to send us a message at contact@kryptos.io.
All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!
Country
Issue
Kryptos Use Case
India
Cryptocurrency transactions are taxed as capital gains, with evolving legislation creating uncertainty.
Kryptos.io streamlines the process by automatically tracking transactions and computing capital gains, adjusting to new regulations for precise reporting.
Brazil
Cryptocurrencies are subject to capital gains tax and must be reported, posing challenges with complex requirements.
Kryptos.io simplifies compliance by offering real-time transaction tracking and detailed tax calculations, making it easier to meet Brazil’s tax obligations.
Nigeria
Regulatory framework for cryptocurrencies is evolving, with uncertainty around taxation and restrictions from the Central Bank.
Kryptos.io provides an adaptable solution by maintaining detailed records and generating flexible reports, helping users stay compliant despite regulatory changes.
USA
Cryptocurrency transactions are subject to capital gains tax, with detailed IRS reporting requirements.
Kryptos.io enhances compliance by automating the tracking of transactions and generating comprehensive tax reports, facilitating adherence to IRS requirements.
UK
Cryptocurrencies are taxed under both capital gains tax and income tax, requiring careful tracking and reporting.
Kryptos.io aids UK users by monitoring both capital gains and income from crypto transactions, ensuring accurate and straightforward tax reporting.
Australia
Cryptocurrencies are subject to capital gains tax, and users must report their gains and losses to the ATO.
Kryptos.io assists Australian users by providing seamless transaction tracking and precise capital gains calculations, ensuring efficient compliance with ATO reporting requirements.
Germany
Cryptocurrencies are taxed as private assets with gains subject to tax if held for less than a year.
Kryptos.io supports German users by tracking holding periods and computing taxes on cryptocurrency transactions, ensuring adherence to German tax regulations.
Japan
Cryptocurrency gains are treated as miscellaneous income and are subject to high tax rates.
Kryptos.io helps Japanese users by offering a detailed tracking system and calculating taxes on miscellaneous income, efficiently managing high tax obligations.
Scenario
Description
Kryptos Features that can be of aid
Multiple Exchanges and Wallets
Consolidating records from various exchanges and wallets to maintain a comprehensive overview of crypto activities.
Seamless integration with numerous exchanges and wallets, automatic import, and consolidation of records.
International Transactions
Managing records for cross-border transactions, including currency conversions and compliance with international tax laws.
Support for multiple currencies, efficient management of cross-border activities, accurate currency conversion for reporting.
Complex Transactions
Handling trades, swaps, staking, lending, and other sophisticated crypto activities.
Advanced tracking, reporting, and documentation for various transaction types. Kryptos' DeFi and NFT modules offer specialized tools for managing decentralized finance and NFT activities, ensuring precise records and comprehensive oversight.
As Web3 evolves, managing a diverse portfolio has become complex. Kryptos simplifies this with advanced tools for real-time tracking, NFT management, and DeFi analytics. Discover how Kryptos turns challenges into strategic advantages for modern investors.
Struggling with crypto tax in Australia? Kryptos.io simplifies the process, ensuring accurate and compliant filings with the ATO. Track transactions and value assets effortlessly—make tax season stress-free.
Mastering Crypto Taxation: Navigate the Complex World of Digital Assets with Kryptos, the Ultimate Solution for Accurate, Efficient, and Future-Proof Tax Reporting.
See More
Taxation of Cryptocurrencies in Sweden
By
Timmy Bergkvist
On
12-11-2021
How are Cryptocurrencies Taxed in Sweden?
The Supreme Administrative Court, like the Tax Court, considers that bitcoin cannot be equated with a co-ownership or foreign currency. The sale of bitcoin must therefore be taxed in accordance with the provisions on other assets in Chapter 52. Income Tax Act, IL. Bitcoin can not be a so-called personal asset, which means that the overhead amount must be calculated according to the so-called the average method and that 70 percent of a loss may be deducted.
When Should I Declare My Cryptocurrency in Sweden?
sold cryptocurrency
exchange a cryptocurrency for one or more other types of cryptocurrency
exchange a cryptocurrency for a FIAT currency, eg USD, Kronor
paid with cryptocurrency when buying a product (for example a pair of shoes) or a service (for example a taxi ride)
lent out cryptocurrency
use cryptocurrency as a gaming bet
You report this on Enclosure K4 under section D, which you submit together with your income tax return.
How you are taxed If you have, for example, bought and sold cryptocurrency, you calculate your profit or loss as follows:
What you have paid (sales price) - what you bought for (overhead amount) = your profit or loss. You who have made a profit are taxed for the whole profit. You pay 30 percent in tax on your profits. If you have made a loss, it is deductible to 70 percent.
Cost Amount For Crypto Tax in Sweden
Your overhead amount is normally the amount for which you purchased your cryptocurrency. But depending on how you obtained your cryptocurrency, the overhead amount is calculated in different ways.
You need to be able to prove the overhead amount with, for example, receipts or original account statements from exchange companies. If there have been wallet addresses, the transactions in the blockchain must be consistent with the reporting of purchases, mining and sales of the bitcoin.
If you have acquired or received cryptocurrency on several different occasions, you must calculate an average overhead amount. The standard method, which uses 20 percent of the sales price as an overhead amount, may not be used when reporting cryptocurrency.
Example - buying and selling cryptocurrency
In 2017, Anela bought bitcoin on two occasions. On October 12, she bought 0.5 bitcoin for SEK 20,000 and on November 12, she bought another 0.2 bitcoin for SEK 10,000. On October 16, 2020, she sold 0.4 bitcoin for SEK 40,000. Anela shall report the sale in K4 under section D.
She makes an average calculation on the help form SKV2198.
Anela can either report her sales in the e-service Income Statement 1 or on paper form K4 under section D.
Report on form K4 section D
Under Number / Amount in foreign currency, Anela fills in 0.4. As a designation, she indicates Bitcoin. She also fills in the sales price (SEK 40,000), overhead amounts (SEK 17,143) and profit (SEK 22,857). At the bottom of the form, she sums up the total amounts.
Accounting in the e-service Income tax return 1
In the e-service Income Declaration 1, Anela looks up K4 - Other securities, other assets (capital investments, eg commodities, cryptocurrencies), etc.
Anela indicates Bitcoin as a designation. She also fills in the sales price (SEK 40,000) and overhead amounts (SEK 17,143). The e-service then calculates her profit automatically.
There is no possibility to fill in decimals in the e-service. Anela therefore rounds to the nearest integer and puts 0 in the box for Number. Anela then writes under Other information that she sold 0.4 pieces of bitcoin.
Examples - purchase, sale, purchase of goods
Eva does not conduct any business and as a private individual has carried out a number of different purchases and sales of bitcoin as follows:
Eva buys 10 bitcoin for SEK 10,000 and then buys another 10 bitcoin for SEK 50,000. In total, she has bought 20 bitcoins for SEK 60,000 and each bitcoin thus has an average overhead amount of SEK 3,000 (SEK 60,000 ÷ 20).
Eva sells 15 bitcoin for SEK 60,000 and the overhead amount is SEK 45,000 (15 x SEK 3,000). The profit will thus be SEK 15,000 (60,000 - 45,000). The remaining overhead amount for 5 bitcoin is SEK 15,000.
Eva buys another 5 bitcoin for SEK 25,000. The total overhead amount is now SEK 40,000 for 10 bitcoin, which entails a new average overhead amount of SEK 4,000 for each bitcoin.
Eva buys goods on the internet for SEK 2,000 and pays with 0.345 bitcoin. Eva thus sells (sells) 0.345 bitcoin for SEK 2,000. The expense amount is SEK 1,380 (0.345 x SEK 4,000) and the capital gain is thus SEK 620 (2,000 - 1,380).
Eva sells 5 bitcoin for SEK 15,000. The average overhead amount is still SEK 4,000 per bitcoin. This leads to a capital loss of SEK 5,000 (15,000 - 20,000).
Eva reports a total capital gain on Enclosure K4, section D of SEK 15,620 (SEK 15,000 + SEK 620) and a capital loss of SEK 5,000. The capital gain is taken up to 100 percent and the capital loss is deductible to 70 percent. There is no set-off on Enclosure K4, section D. The Swedish Tax Agency automatically reduces the capital loss to SEK 3,500 (5,000 x 70 percent) before it is deducted from the capital gain when calculating the surplus capital.
Example - switching between different cryptocurrencies
Samira does not conduct any business and as an individual has invested in bitcoin. She has since exchanged her bitcoin for litecoin. Switching from one cryptocurrency to another means that she must make a capital gain calculation. Samira has previously bought 10 bitcoin for SEK 100,000 and she exchanges these for litecoin. Her overhead amount for the bitcoin she exchanged for will thus be SEK 100,000. The sale price will be the value in Swedish kronor of the litecoin that Samira received at the time of the exchange. Samira must report this in the income category capital in Enclosure K4, section D.
Example - buying and selling bitcoin (simplified accounting)
Eddie does not run a business and has traded with bitcoin as a private person.
Eddie has bought 2 bitcoin for SEK 128,000. His average overhead amount for each bitcoin will be SEK 64,000 (SEK 128,000 ÷ 2). Eddie will then sell 0.01 bitcoin in 2020 on two hundred different occasions. His overhead amount for each sale will be SEK 640 (SEK 64,000 x 0.01). Some of the sales have led to profits and some to losses.
Eddie does not have to report each sale separately. He sums up his total sales price and his total overhead amount for the profit transactions he has made. He then fills in the sales price and the overhead amount in Enclosure K4 under section D. The difference is reported as a profit. He also fills in the total number of bitcoin he sold with a profit rounded to the nearest whole number. He then sums up his total sales price and his total overhead amount for the loss transactions he has made. He then fills in the sales price and the overhead amount in Enclosure K4 under section D. The difference is reported as a loss. He also fills in the total number of bitcoin he sold with a loss rounded to the nearest whole number.
The profit is taken up to 100 percent and the loss is deductible to 70 percent. There is no set-off on Enclosure K4, section D. The Swedish Tax Agency automatically reduces the loss to 70 percent.
Taxable Events For Cryptocurrency in Sweden
Here we have summarized various taxable events for which you are liable to pay tax. We at Kryptos are not responsible for the Tax Agency rules regarding the taxable events not matching our information. This is not tax advice, we therefore ask you to contact the Skatteverket for more information with questions or concerns.
Sale of Cryptocurrency in Sweden
Selling cryptocurrency in Sweden is a taxable event and must be declared as a capital gain.
Trade Crypto for Crypto
To trade crypto for crypto or crypto for stack coins (TUSD → BTC eller BTC → TUSD) is a taxable event and is taxed as a capital gain.
If you have invested in bitcoin then switch your bitcoin to ethereum. Switching from one cryptocurrency to another requires you to make a capital gains calculation. Samira has previously bought 10 bitcoin for SEK 100,000 and she exchanges these for ethereum. Her overhead amount for the bitcoin she exchanged for will thus be SEK 100,000. The sale price will be the value in Swedish kronor of the ethereum that Samira received at the time of the exchange.
Initial Coin Offering (ICO)
ICOs are taxed as sales. In case of successful sale, the overhead amount is the market value of the cryptocurrency that you used to participate.
Purchase of Goods and Services with Cryptocurrency in Sweden
Purchases of goods and services are taxed as sales and must be declared as capital gains.
Margin Trading
The realized gain or loss is taxed as a capital gain when the position is closed.
If you realized a profit, the cost base profit is applied after you have paid the capital gains tax. In the event of a loss, it works in the same way as if you sold your crypto for SEK 0, the loss is equal to your crypto's average cost base.
Buy Crypto
Buying crypto is not taxed, however, it is important to keep track of the price of the cryptocurrency at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Transfer Crypto Between Your Wallets
Transfers between different wallets do not need to be taxed. For your own sake, it is good to book your transactions. This will make it easier for you to calculate the overhead amount.
Lost or Stolen Cryptocurrency in Sweden
Lost, hacked or stolen crypto is not taxed. If you have made a profit on your crypto, the profit is taxed regardless. You can therefore not compensate for lost or stolen crypto against your winnings. You remove the relevant cost base from your calculations.
Give / Receive Crypto as a Gift
Giving away or receiving a crypto as a gift is not taxed. This also applies to donations, however, it must be taxed on sales.
Income From Other Activities (eg. Freelance)
Income from other activities such as work or a service must be declared as income tax. The cost basis for the crypto you received is the same value that you stated as income.
Rewards, Airdrops & Forks
Airdrops and Hardforks are counted as gifts and are not taxed. Only on sale should this be taxed and the cost amount should then be zero.
Mining Cryptocurrency in Sweden
If you as an individual have income from mining bitcoin and other cryptocurrencies, you must pay tax on the income. They are normally taxed as income from employment (hobby) but can exceptionally be taxed as income from business activities.
Lending of Crypto
Lending of cryptocurrency in Sweden is taxed as a sale and must be declared as a capital gain.
Interest
The interest is classified as income and must therefore be taxed as earnings. It is a bit unclear how it should be declared, in a conversation with the tax authorities we came to the conclusion that income from interest can be declared in the K4 form section D (see picture) and not in section 7.2 Interest income, dividends, profit from Enclosure K4 section C ( listed bonds, currency, etc.).
Loans against fiat
Borrowing FIAT currency, eg USD, Kronor, Euro in exchange for crypto is taxed as a sale and must be declared as a capital gain.
Closed loan
Closing your loan or taking back your crypto does not count as a taxable event and does not need to be declared.
Staking & Staking Rewards
Staking of a cryptocurrency is taxed as a sale and must be declared as a capital gain.
Staking rewards
Staking rewards are classified as an income and should therefore be taxed as a gain, just like the interest rate on a loaned crypto.
Closed staking
Ending your staking or taking back your crypto does not count as a taxable event and does not need to be declared.
Non-Fungible Token (NFT)
Purchase NFTs
Buying NFTs is not taxed, however, it is important to keep track of the price of the NFT at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Purchase of NFTs for crypto
To purchase an NFT with crypto (ETH → NFT) is taxed as a sale and must be declared as a capital gain.
Sale of NFTs
The sale of an NFT is a taxable event and must be declared as a capital gain.
Sale of NFT for crypto
The sale of NFTs for crypto is a taxable event and must be declared as a capital gain.
Sale of NFT for another NFT
A sale of NFT for another NFT is a taxable event and must be declared as a capital gain. It is important to keep track of the price of the NFT at the time of your purchase in order to later be able to calculate the correct overhead amount when selling.
Cryptocurrency in Business
If you have received cryptocurrency as payment in your business, the subsequent change in value should normally be taxed as income from capital. However, this does not apply in businesses where the cryptocurrency is an inventory asset, for example if you run an external exchange business. In such cases, you must report the income as income from business activities.
Example - business
Olof sells goods in his web shop on the internet. He charges in bitcoin. Olof books each sale separately in Swedish kronor based on the value on the day he is paid in bitcoin. Since bitcoin does not constitute stocks in this type of business, Olof is considered to make his own withdrawal of bitcoin the moment he receives them.
In January, he booked sales income and VAT with a total of SEK 34,500 and during this period he received a total of 0.4 bitcoin, which he then takes out and then sells for SEK 36,000. This must be reported in the income category capital in Enclosure K4, section D. The sales price is SEK 36,000 and is reduced by the overhead amount that corresponds to the reported amount in the business, including VAT, ie SEK 34,500. The capital gain will be SEK 1,500.
Disclaimer
We at kryptos.io strive for the information to be correct in all respects. However, we can not guarantee this, and therefore can not take any responsibility for any losses caused by incorrect information on this web service. However, we are grateful for all remarks about inaccuracies. If you have found something that seems wrong, feel free to send us a message at contact@kryptos.io.
All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!
As Web3 evolves, managing a diverse portfolio has become complex. Kryptos simplifies this with advanced tools for real-time tracking, NFT management, and DeFi analytics. Discover how Kryptos turns challenges into strategic advantages for modern investors.
Struggling with crypto tax in Australia? Kryptos.io simplifies the process, ensuring accurate and compliant filings with the ATO. Track transactions and value assets effortlessly—make tax season stress-free.
Mastering Crypto Taxation: Navigate the Complex World of Digital Assets with Kryptos, the Ultimate Solution for Accurate, Efficient, and Future-Proof Tax Reporting.