How to calculate tax on cryptocurrencies

In Norway, cryptocurrencies are treated as assets and must be declared in your yearly tax return. In Denmark, cryptocurrency trading is normally considered speculation and must be declared in your yearly tax return. Every time you sell crypto on Firi, you will incur either a profit or loss. This is a taxable event.

We know that many people dread calculating their cryptocurrency taxes. Tax regulations are complex, and it can be difficult to figure out where to report what. With our tax calculator you get help calculating your cryptocurrency taxes, and we tell you exactly which numbers to enter where. You can also download detailed documentation for the tax authorities, should they require it.

Before you begin, we recommend reading through the official guidelines for tax on cryptocurrencies from the tax authorities in your country: Skatteetaten's guide to tax on virtual currencies for Norwegian customers, and Skat's guide to tax on cryptocurrency for Danish customers. In Norway the tax return deadline is April 30th, and in Denmark the deadline is May 1st.

Please note: For now, we can only calculate taxes on trades you have made on Firi. If you also hold crypto on other exchanges or external wallets, we recommend you read the following article on cryptocurrency tax on how to proceed.

The tax calculator gives you the following:

For Norwegian customers:

For Danish customers:

When calculating taxes, historical prices from Firi's market are used.

Any transaction fees incurred are added to the buying or selling total sum, meaning they are included in profit, loss and/or income.

Bonuses are considered income for taxation purposes. The value of a bonus is calculated based on the average price of the bonus cryptocurrency on the day you receive the bonus in your wallet. The average price is based on prices gathered from the largest international exchanges.

Firi uses the FIFO principle of realization (First In, First Out). For Danish customers, the "aktiv-for-aktiv" principle of realization is used if possible.

You can’t directly use Firi’s tax calculator if you have traded on other local or foreign exchanges, and have transferred crypto to your Firi wallet. The reason for this is that we won’t know the purchase value of the transferred crypto, and therefore cannot calculate profit or loss on the transaction. You can easily add this information to our calculator.

Read our guide to cryptocurrency tax.

For Norwegian customers:

Log in at Person and open your tax report. Find the theme ‘Finance' in the tax return. Under ‘Other financial products and virtual currency/cryptocurrency’, press “Add” and 'Virtual currency/cryptocurrency’.

Here you can choose to enter information for each cryptocurrency you own, or to enter summed tax information for many cryptocurrencies.

If you have only traded with one cryptocurrency, like for instance bitcoin, it's easiest to enter information for each cryptocurrency. If you have traded with several different cryptocurrencies, we recommend entering summed tax information.

If you want to download documentation from Firi for your tax return, you can do this by pressing the “Download” button in the top right corner of the tax calculation page. Skatteetaten does not require you to submit this documentation with your tax report, but they may ask you for it if necessary.

For Danish customers:

For information on this, we recommend reading through the official guidelines for tax on cryptocurrencies from the tax authorities in your country: Skatteetaten's guide to tax on virtual currencies for Norwegian customers, and Skat's guide to tax on cryptocurrency for Danish customers.

Good luck with reporting your cryptocurrency taxes!

1. Every time you sell crypto this is a realization of profit or loss.

You must therefore have an overview of all your transactions during the past year. Remember that the deadline for submitting a tax return with any changes is 30 April for private individuals.

2. Calculate your assets, gains, losses, income from strikes or similar and expenses.

You can either do this manually, or use one of the many tools available. Fortunately, Firi has its own tax calculator that calculates all these things for you - Completely automatically!

3. Enter the figures in the tax return.