Prevent black money
If you don’t declare your Guldens with the tax authorities, it becomes black money. If your Guldens would increase in value significantly in the coming years you will not be able to declare/explain it and you would end up holding a large amount of black money.
Guldens are accounted for in box 3 (for the Dutch tax system)
Guldens that you own are accounted for as net assets (equity) in box 3 (sparen en beleggen – savings and investments). To determine your net assets, 1 January is used as reference date on which you base your tax declaration. By the way there is a tax exemption for tax in box 3 if your net assets remain under a certain threshold.
Table tax free net assets
Year / Tax free net assets excluding partner / Tax free net assets including partner
2017 / € 25.000 / € 50.000
2016 / € 24.437 / € 48.874
2015 / € 21.330 / € 42.660
Example tax declaration over 2016 (in 2017):
John is single and on January 1st 2016 owned 500,000 Gulden.
The rate of 1 Gulden on January1st 2016 : 315satoshi
1 Bitcoin at this date equaled $391
1 Dollar was 0.82655 EUR
De value of 1 NLG on January 1st 2016 was:
$0.00100166 → € 0,000827922073
In total John on January 1st 2016 owned 413.96 euros in Guldens. This amount needs to be declared together with John’s other net assets in his tax declaration for 2016 if he get above the tax exception hurdle of EUR24,437. On the value of your net assets above the tax exception hurdle you pay 1.2% capital gains tax, below that it is exempt.
So John pays a maximum of 4.97 euros of capital gains tax over his Guldens. If John is below the hurdle he does not pay any capital gains tax.
Be careful as an active trader
If you actively trade Guldens, the tax authorities can see this as active wealth management. If you trade for a hobby then there is no problem. If you trade daily, or if you trade for others, please get advise so you avoid sudden surprises.
This post is also available in: Dutch