There are only two certainties in life: We will die one day and we will always have to pay taxes. Unfortunately, we cannot get away from that. It is therefore better to know the rules well so that you can stick to them. If you don’t, you can saddle yourself with annoying problems. And it’s really not worth it. In the Netherlands we also have to pay tax on cryptocurrencies.
The rules in Tax change every year, which makes it difficult to always know exactly what the situation is. In 2023 we submit our tax return for 2022. In this article we explain the tax rules regarding crypto for the tax year 2022 in the Netherlands.
Do I have to pay tax on crypto?
Yes, unfortunately we have to tax on crypto Pay. You state this in box 1 (income from work and housing) or box 3 (income tax) at the Tax Office. This can therefore be different for everyone, depending on the situation you are in.
You declare crypto in box 1 if:
- You get a main income from crypto (and therefore have no other job than crypto trading)
You declare crypto in box 3 if:
- You own/trade crypto in addition to a job from which you earn a main income (you indicate the income from this job in box 1)
For most people, they enter their cryptocurrencies in box 3. The line between these two boxes is very thin, so sometimes it’s unclear which box to enter your crypto. Are you in doubt? Then you can contact an accountant.
What if I don’t disclose my crypto to the tax authorities?
Crypto is often seen as an anonymous currency. That is partly true. When you use blockchain, you don’t have to give your personal data anywhere. Your wallet address is therefore not directly linked to your identity, provided you use the correct wallet: a non-depot allowance. You then have the keys to your wallet in your own management. Chances are you are using a depository such as a crypto exchange.
Do you store your crypto on a central crypto exchange such as Bitvavo or Binance? Then you must first verify your identity to use the exchange. Your cryptocurrencies are then linked to your identity. Even when you buy crypto on a central exchange and send it to a non-depot wallet, your identity is tied to that non-depot wallet. Skat can therefore easily find out which cryptocurrencies are yours. Now, they may not yet have the manpower or technologies to quickly track people who are withholding crypto, but that may change in the future. You can get fined afterwards for not giving up your crypto. In the worst case, you will be blacklisted.
So always report your crypto to the tax authorities. Chances are you’ll pay little or no tax, so it’s not worth the risk.
Have the tax rules for 2022 not been adjusted?
The Dutch government has actually adjusted the tax rules for box 3. This new calculation method divides the effect into three groups:
- Other assets (investments)
The size of the tax differs from group to group. For example, under these rules you pay more tax on ‘other assets’ than on ‘savings’. Under these rules, you would sometimes pay more tax than the return you had earned. A group of people thought that it was not fair and therefore went to court. On December 24, 2021, the Supreme Court admitted that these tax rules are actually not fair. The government therefore had to adjust the rules again. The government and tax authorities indicated that this could take until 2026. Therefore, you can choose whether you want to use the new calculation method or the old calculation method for the tax year 2022.
You can learn more about the court’s decision in the video below.
What reference date are you using?
Before declaring your cryptocurrencies to the tax authorities, you must first convert their value into euros. Do you pay income tax for 2022? Then you use 1 January 2022 as the reference date. This means you don’t have to look at how much your crypto has increased in value. You only need to declare the value of all your cryptocurrencies and other investments on January 1, 2022. For this, you use the exchange rate used by the platform you trade on.
An advice: When it’s January 1st again, you can take a screenshot of all your wallets. When you need to do taxes again, you will quickly find the value of your cryptocurrencies!
Box 3: How much tax will I pay on crypto in the 2022 tax year?
We explain below how much tax you pay in box 3 for the tax year 2022.
In the Netherlands, we do not have to pay tax on part of our assets. We call this tax-free compensation. For the tax year 2022, the tax-free allowance is €50,650. For tax partners, the tax-free part is €101,300. For green savings/green investments, you are entitled to an additional tax-free component of €61,215.
Are your assets worth less than €50,650? Then you’re lucky, because then you don’t pay tax on this. You must still report this capital to Tax and Customs.
You also don’t have to completely count up your debts. For 2022 there is a debt threshold of €3,200. For tax partners, the debt limit is €6,400. You include the remaining debt in box 3.
Old calculation method
Under the old calculation method, you pay more tax as soon as you have more increases. The government assumes that you earn more returns when your capital is higher. It does not matter to the tax authorities how this return is achieved, because savings and investments are not separate.
Below you can see the amount of the tax according to the old calculation method in box 3.
|€0 – €50,650||0%|
|€50,650 – €101,300||1.82%|
|€101,300 – €1,013,000||4.37%|
|More than €1,013,000||5.53%|
New calculation method
With the new calculation method, the tax authorities no longer assume that you earn more returns when you have more capital. A distinction is now made between savings, other assets and debt. Why? You get a lower return on savings than on investments, according to the tax authorities. So it doesn’t matter if that’s actually the case. Therefore, the judge decided that this calculation method is not reasonable.
Below you can see the amount of the tax according to the new calculation method in box 3.
You will probably immediately notice that you pay significantly more tax on other assets. This also includes investments in crypto. It is of course possible that in 2022 you will not have earned any return at all that exceeds this 5.69%. Therefore, many who invest their money choose the old calculation method. You pay less tax there. People who mainly have a lot of savings often choose the new calculation method. Here, they pay less tax on their savings than according to the old calculation method.
Which calculation method should I choose?
You can decide for yourself which calculation method you use. Calculate yourself how much tax you have to pay according to the old calculation method and according to the new calculation method, to find out which method you pay the least tax with.
We have also made a video about the information we provide in this article. You can watch the video below.
Tax on crypto in box 1
If you don’t have a job from which you earn a main income, is crypto your main and only source of income? In that case, you probably pay tax on that in box 1. The tax amount in box 1 is considerably higher than in box 3. The public sector taxes income from work and housing the hardest. Below is an overview of how much tax you pay on taxable income. This means that all tax deductions etc. already deducted.
|Disk||Taxable income||Tax percentage|
|1||Up to €69,399||37.07%|
Frequently asked questions
In this article we have tried to tell you as much as possible about crypto tax in 2022. Still have questions? Maybe the answer is below!
How much tax do I pay as a miner?
Are you a miner? Tax states that the income from mining is often low due to the high costs. Because you can hardly benefit from this, you do not have to report the mining income you earned in 2022 to the tax authorities. But: that changes when the revenues from mining are higher than the costs. You then enter this income under ‘income from other work or profits from businesses‘.
What if I receive my salary in crypto?
Are you employed and are you paid in crypto? Then you convert the value of the crypto to euros. You then enter this value in box 1. To convert the cryptocurrency, use the date you received the crypto. You use the exchange rate that your wallet or exchange uses.
What if I’m an entrepreneur and I get paid in crypto (income tax)?
Are you an entrepreneur and getting paid in crypto? Then you convert the value to euros. You then add this amount to your turnover. You add the profit or loss you achieve as an entrepreneur to the income statement. When you buy crypto as an entrepreneur, these are part of the company’s assets. If you buy it outside your business, it just falls under your personal assets.
What if I’m an entrepreneur and I get paid in crypto (sales tax)?
You convert the value of the crypto to euros and add it to your turnover. Then you usually pay here VAT about.
I’m not sure how to declare my crypto to the IRS…
Not quite sure how or what? Then you could get help from a bookkeeper or accountant. They specialize in income tax and can therefore answer all your questions. Of course, you can also have them submit your income tax.
Unfortunately, in the Netherlands we have to pay tax on our cryptocurrencies. The size of the tax may vary from person to person and situation. In most cases, your cryptocurrencies fall into box 3, but there are also situations where they fall into box 1. So do your research on this. Do your cryptocurrencies fall into box 3? Then you can choose between the new calculation method and the old calculation method for the tax year 2022. Here, too, it is best to do research on which calculation method suits you best. People who have a lot of savings often choose the new calculation method. Here you pay less tax on savings. People who have a lot of capital in investments like crypto and stocks often choose the old calculation method. You pay a lower tax on investments there.
Looking for more information or have questions about cryptography, wallet addresses, or other crypto topics? Or would you like to meet other crypto enthusiasts? In our product’s free Discord channels Money Mastery from AllesOverCrypto you can ask questions and talk to thousands of other crypto enthusiasts. Have other crypto-related questions? The easiest way is to look up your question in our FAQ. What you can also do is that you google your question + AllesOverCrypto. Please let us know what you think about this article.
Main photo by Nancy Beijersbergen