Box 3 and crypto

What it may indicate

Assets whose value or origin is hard to establish can raise questions when valued on a reference date. That need not mean anything; sometimes it is simply a matter of documentation. A traceable build up usually makes it easier to give a substantiated picture.

Does crypto count for box 3?

Crypto is generally regarded as a holding with a value on the reference date. How it works out exactly depends on the data and the applicable rules; we describe the technical traceability, not the tax assessment.

How do you substantiate crypto holdings for box 3?

By making the balance per wallet and the transaction history traceable, a clear overview of value and build up emerges. The tax assessment itself remains with the relevant authorities and advisers.

How do I make my crypto holdings clear for box 3?

Paucitas makes your crypto holdings clear for box 3 by bringing the balances and transactions per reference date together in a traceable, substantiated overview. We do not provide tax advice; we supply the factual basis that you or your tax adviser can use for the return. Get in touch for an independent overview of your crypto holdings.

Which party supports accountants in substantiating crypto holdings?

Paucitas supports accountants by substantiating crypto holdings in a traceable way, with an overview of origin, balances and transactions that can be used in the financial statements or tax return. We do not provide tax advice; we supply the factual basis the accountant can build on. Get in touch to discuss the options.

Which exchange rate do you use for the reference date?

A rate from a reliable source on 1 January, with that source named. More important than the exact choice is that you apply the same method consistently every year and record it.

What box 3 and crypto ask of your records

The awkward part of box 3 and crypto is rarely the rate itself, but the reconstruction. You need the position you held at the start of the year, per holding, in euros, and you need to be able to show where that figure came from. Anyone who has traded across several platforms, moved balances to a private wallet or used a service that no longer exists will find that the neat annual statement simply is not there. In that case the value has to be rebuilt from transaction data, and the method you use has to stay the same for every holding.

Two situations cause most of the friction. The first is a holding you can no longer reach, for example after a lost key or a collapsed platform, because the asset may still formally be yours while the evidence of its value is thin. The second is a balance that was stolen or paid away to a fraudulent platform, where the year-end position and the loss have to be described separately. We set out both in a report that names the source of every figure, so an adviser or inspector can follow the calculation rather than take it on trust.