Crypto Tax: How to Declare in Sweden
When it comes to declaring cryptocurrencies, it can be difficult to know how to proceed. In this guide, we take you through the process step by step in a clear and simple way.
How is crypto taxed?
The Supreme Administrative Court (Högsta förvaltningsdomstolen) has ruled that cryptocurrencies should not be treated as foreign currency or securities when it comes to taxation. Instead, they should be seen as other assets according to the Swedish Income Tax Act.
You therefore need to declare transactions with cryptocurrencies if you:
- Sell cryptocurrency
- Exchange one cryptocurrency for another
- Pay with cryptocurrency for goods or services
- Lend cryptocurrency
- Use cryptocurrency as a stake in gambling
All these transactions results in either a capital gain or capital loss that should be reported on Form K4 in connection with your income declaration.
Calculate profit/loss - Acquisition cost
To calculate your profit or loss, you need to know your acquisition cost. The acquisition cost is always stated in Swedish kronor. How you calculate the acquisition cost depends on whether the cryptocurrency was acquired through:
- Purchase: The acquisition cost is the price you paid for the cryptocurrency.
- Mining: The acquisition cost is the market value of the cryptocurrency when it was allocated to you.
- Payment in private business: The acquisition cost is the value reported as turnover, including VAT.
- Salary: The acquisition cost is the value reported as income from employment.
- Gift: The acquisition cost is taken over from the giver.
Remember that you need to be able to show receipts and account statements to prove the acquisition cost. If you cannot prove any acquisition cost, you can set it to 0, but this means that the entire disposed value is considered a profit, which leads to a higher tax burden.
Calculate profit/loss - Acquisition cost
To calculate your profit or loss, do the following:
Value of what has been sold - Acquisition cost of what has been liquidated = profit or loss
If you have made a profit, you pay 30% tax on the entire profit. If you have made a loss, you can deduct 70% of the loss. You therefore declare profits and losses separately for each cryptocurrency in the K4 form. The Tax Agency will then deduct losses for you.
How to fill in the declaration?
The process usually looks something like this:
- Download transactions from previous years: Retrieve all transactions from your exchange accounts and wallets, not just the past year. This is important because your acquisition costs are calculated based on all your previous transactions.
- Determine market value: If you have exchanged between different cryptocurrencies, determine the value of these currencies in Swedish kronor at the time of each exchange. This is needed to accurately calculate capital gains/losses and acquisition costs.
- Calculate acquisition costs: Calculate your acquisition costs for the cryptocurrencies you have liquidated in the year to be declared.
- Calculate capital gains/losses: Based on acquisition costs and information on disposals that occurred during the year, you can calculate capital gains and capital losses.
- Fill in the K4 form: Report your capital gains and capital losses for each cryptocurrency by filling in these on the K4 form under section D.
If you want to save time and have many transactions, consider using a crypto tax service. BTCX has a unique collaboration with the largest of these services, and all our customers get up to a 30% discount. Go to 'Do your taxes easily with our partners' section for more information. These services can help by automating several of the steps above and can produce a downloadable K4 form to send to the Tax Agency.
Submitting the declaration
Declare most easily via the Tax Agency's e-service for income declaration in Appendix K4 section D; you can also use the paper form. On the K4 form, you report your profits and losses separately for each cryptocurrency you have disposed of during the year.
When using the e-service, you should report cryptocurrencies in whole numbers. For example, if you have sold 0.7 bitcoin, write 1 bitcoin. In the "Other information" section of your declaration, you then specify the exact number you sold, i.e., 0.7 bitcoin. If you use the paper form, you can specify amounts with decimals on the K4 form.
Do your taxes easily with our partners
Divly helps you calculate and declare your crypto taxes to Skatteverket. Divly has done extensive research and used Swedish tax lawyers to customize their offering to the Swedish tax system. As Divly is a Swedish company, they also offer customer support in Swedish!
As BTCX has partnered with Divly, all BTCX customers receive a 30% discount on Divly's reports. To take advantage of the discount simply download your transaction file from BTCX, drag and drop it into Divly. The discount is automatically applied when you purchase your tax report.
Whether you are a taxpayer looking to get an accurate crypto tax report, a business looking to track your inventory or an accountant trying to work your way through a maze of transactions, Koinly has got you covered - and as BTCX has a partnership with Koinly, you as a customer get a 20% discount!
How? Koinly is a Bitcoin and cryptocurrency tax calculator that makes generating tax reports super easy. Simply connect your crypto wallets and exchanges via API or CSV files and let Koinly calculate your capital gains and income.
To claim your 20% discount, simply click the button below, and your discount will be automatically applied. If you already have a Koinly account, use the discount code "CA8860A2" during checkout.
Monetax is a leading service for declaration of crypto assets that specializes in complex tax reporting for one or more tax years. At Monetax you always get personal service and all you need to do is upload your transactions from trading platforms and enter your public blockchain addresses and the Monetax team will create the K4 report for you. The offer is fully customized to your needs and priced individually. Start by booking a free 10-minute call with a tax expert at Monetax.
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