Do I have to declare my cryptocurrencies on my tax return?

To put it simply: Yes. Because crypto assets are subject to the wealth tax. No matter whether you made profits or losses.

Photo by Christin Hume

Declaring crypto assets to the tax authorities

Cryptocurrencies are affected by the wealth tax and, despite strong fluctuations in value, must be reported under the category "securities directory" in your tax declaration. Bitcoin, Ethereum, Ripple and other cryptos are assessed at market value, which is based on a directory of the Federal Tax Administration. In this list, the tax value is declared at the end of the year, based on the average of various trading platforms. As with shares, you can select your coins and enter the quantity.

If no rates are available, the year-end rate of one of the most popular trading platforms, such as Binance, has to be used. Profits from buying and selling cryptocurrencies are usually not subject to tax, but losses cannot be deducted from your taxable income.

Income from mining, staking or lending, on the other hand, must be declared for income tax purposes. It is important to follow these tax rules to avoid unpleasant surprises when declaring your taxes.

Free tax statements with Cointract

Doing your tax declaration is a challenge in itself. To consolidate all your crypto coins and research the corresponding prices takes too long, in our opinion. And the next crux: How do you prove to the tax authorities which crypto assets you own?

With Cointract, you will receive an official tax receipt at the end of the year, showing the number of coins and the corresponding prices as of 31 December. Free of charge.

Download the Cointract app and trade your chosen coins with ease. We will balance your Cointract account for you at the end of December 2023.

This article is for informational / promotional purposes.