Taxation & Cryptocurrencies

(In December 2025, an article by Debbie Liem appeared in the Oost-Brabant Bar Bulletin on taxation & cryptocurrencies. Below you can read her article as published in this journal.)

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The fiscal landscape cannot, of course, turn a blind eye to digital developments such as the emergence of cryptocurrencies. To date, tax legislation has not (yet) included any specific provisions governing the treatment of cryptocurrencies. As a result, there is room for discussion with the tax authorities about how cryptocurrencies should be taxed.

In order to gain as much insight as possible into the ownership of crypto assets, a legislative proposal was submitted to the Dutch House of Representatives in July 2025. The aim of this proposal is to exchange more information on cryptocurrency holdings with the tax authorities.

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Audit of tax returns

The legislative proposal (Implementation Act for the EU Directive on the Exchange of Information on Crypto-Assets) concerns the implementation of a European directive. Under this proposal, crypto service providers are required to collect, verify, and share information about their users with the tax authorities. The intention is that tax authorities in different Member States will exchange information about each other’s residents. The information obtained can be used to audit tax returns.

It is currently envisaged that the legislative proposal will enter into force on 1 January 2026. Crypto service providers must report no later than 31 January of the following year. With an anticipated entry into force date of 1 January 2026, the reporting obligation would therefore apply for the first time on 31 January 2027.

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Voluntary disclosure

Tax law provides for the possibility of making use of the so-called voluntary disclosure scheme (also referred to as voluntary correction). If income or assets were not included in tax returns in the past, this can be voluntarily reported to the tax authorities. This statutory arrangement can also be used in relation to cryptocurrencies, such as Bitcoin or Ethereum. A successful appeal to the voluntary disclosure scheme may have a mitigating effect on any potential penalties. Such penalties may consist of administrative fines or sanctions under criminal law.

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Voluntariness

For a successful appeal to the voluntary disclosure scheme, several conditions must be met. One of these conditions is voluntariness. The taxpayer must report the cryptocurrencies to the tax authorities of their own accord — “voluntarily.” This requirement is assessed by examining whether the taxpayer knew or reasonably should have suspected that the tax inspector was already aware, or would become aware, of the inaccuracy or incompleteness of the tax return. If the taxpayer knew or reasonably should have suspected this, there is no voluntariness.

In his opinion of 5 July 2024, Advocate General Koopman noted that the voluntariness criterion contains both an objective and a subjective element (see section 4.12 of the opinion, ECLI:NL:PHR:2024:739). Whether voluntariness exists always depends on the specific facts of the case. In situations where, for example, automatic exchange of information takes place and receives media attention, this assessment can become complex (cf. Supreme Court 22 January 2021, ECLI:NL:HR:2021:103 and The Hague Court of Appeal 17 October 2023, ECLI:NL:GHDHA:2023:2033 (the latter decision was upheld by the Supreme Court in Supreme Court 18 July 2025, ECLI:NL:HR:2025:1062)).

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Taxation

The aforementioned voluntariness criterion is relevant to the potential punitive aspect. In addition, an assessment will be made as to how cryptocurrencies are included in taxation. If a natural person is involved with cryptocurrencies, the question may arise, for example, whether they fall under Box 1 or Box 3 of the Dutch income tax system. Broadly speaking, the current main rule is that trading in cryptocurrencies is speculative in nature and therefore falls under Box 3. If there is additional labour on top of investment activities (activities that go beyond normal asset management), income generated from cryptocurrencies may be taxed in Box 1 (see, for example, District Court of North Netherlands 4 April 2024, ECLI:NL:RBNNE:2024:1216, paragraphs 9.1 through 9.9, and Amsterdam Court of Appeal 18 March 2025, ECLI:NL:GHAMS:2025:1479, concerning the development and use of a trading bot).

If cryptocurrencies are held by a legal entity, this falls within the scope of corporate income tax. Furthermore, under certain circumstances, other forms of taxation may also come into play.

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Conclusion

Like the crypto market itself, the taxation of cryptocurrencies is also evolving. It is possible to make arrangements with the tax authorities — whether or not through a settlement agreement — regarding the manner in which cryptocurrencies are included in taxation.

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This contribution reflects developments up to and including 17 October 2025.

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