Norwegian Director of General Taxation Hans Christian Holte, has declared that Bitcoin will not be recognized as a legitimate currency, and will be subject to local taxation.
“[Bitcoin] doesn’t fall under the usual definition of money or currency.” Holte stated earlier today.
We have reported on the stance from other countries; however we have yet to see any official action in regards to taxation on Bitcoin. According to a statement from the Office of Taxation in Norway, Bitcoin can, and will, be taxed under the Norwegian wealth law, and any report of losses in trading the cryptocurrency can be deducted as a tax write off. Kristoffer Koch, the Norwegian whose $27 investment has grown to over $866,000 would be one of those taxed under the new law.
After deliberations, the Norwegian government announced Bitcoin will be treated as an asset, as opposed to a currency, similar to the Central Bank of China’s announcement recently. Holte however, is rumored to be working with other financial sectors from other countries to work on making the currency legitimate.
Guide to Outsourcing Your IT DepartmentGo to article >>
Norway’s announcement comes shortly after other countries have made a stance on Bitcoin, the latest being South Korea who has decided to follow suit with China and reject Bitcoin as a currency. Switzerland also recently began looking into regulation and legality surrounding Bitcoin. With so many countries taking a position on the subject, we are most likely going to see more come out with their announcements shortly.
Image courtesy of Wikipedia