Taxation Belgium: How to calculate your crypto tax?
Publié le 13 May 2024
The taxation of cryptocurrencies in Belgium has undergone significant changes for the year 2024, with clear guidelines guiding investors on how to declare their digital assets and calculate their taxes due. Inspired by Waltio’s white paper, this article offers a detailed guide to understanding and correctly applying the tax rules relating to cryptocurrencies in Belgium.
Belgian regulatory context
The year 2023 has seen major changes in the cryptocurrency sector, most notably with the adoption of MiCA regulations by the European Union, aimed at framing the crypto-asset market. In Belgium, these legislative developments are designed to protect investors and strengthen oversight of cryptocurrency-related activities, while combating tax evasion through automatic information exchanges between EU member states.
Calculating crypto taxes in Belgium
Declaration of capital gains
Capital gains declarations must take into account the FIFO (First In, First Out) method, which calculates net gains after deduction of transaction costs. This calculation is essential for determining the amount taxable under miscellaneous income.
Declaration of Passive Income
Passive income is taxed as soon as it is received, and its declaration requires that it be valued in fiat currency at the time of acquisition. All such income must be declared in the relevant section of the tax return, under the heading of income from movable property.
Estimate your tax liability with a crypto tax simulator
A good way to get an idea of your tax liability is to use a crypto tax simulator. Simulators give you an overview and estimate of your tax calculation. However, to perform a correct capital gains calculation, you’ll need to track all your transactions, as well as the overall value of your portfolio since day 1ᵉʳ.
💡 Crypto tax simulators are a good way to give you an idea of your crypto tax amount. It cannot, however, be considered a reliable tool for calculating and declaring your crypto taxes to the tax authorities.
Use cryptocurrency tax return software to calculate your crypto taxes in Belgium
The main advantage of a cryptocurrency tracking and tax reporting tool like Waltio lies in the automation of all tasks. Waltio automatically retrieves your transaction data from over 200 wallets, blockchains and exchanges. Once all your transactions have been retrieved, Waltio identifies taxable transactions, calculates capital gains and edits all your crypto tax documents.
Using an Excel spreadsheet to calculate your crypto tax liability
The Excel spreadsheet is an inexpensive way to calculate your cryptocurrency earnings. On the other hand, it can be very time-consuming and a source of many errors. It’s worth remembering that, while the right to error exists in tax matters, this does not cover repeated or intentional errors.
Indeed, tracking via an Excel spreadsheet to declare your cryptocurrencies requires manually adding all your transactions since the 1ᵉʳ day, valuing your buy, sell prices as well as the overall value of your portfolio at the time of each transaction.
You’ll need to spend many hours researching information, entering data and setting up calculation formulas. You’ll also need to keep abreast of the latest changes in cryptocurrency taxation to calculate your crypto capital gains and losses in line with the French tax regime.
You’ll need to spend many hours researching information, entering data and setting up calculation formulas. You’ll also need to keep abreast of the latest changes in cryptocurrency taxation to calculate your crypto capital gains and losses in line with the French tax regime.
Engaging with specialist tax advisors such as Avroy Avocats and using dedicated platforms such as Waltio can greatly facilitate this task, offering tailored tools and expert advice to navigate the cryptocurrency tax landscape in Belgium serenely.
Would you like to declare your crypto income in Belgium ? 1ᵉʳ cryptocurrency tax accounting software in Belgium and number 1 in France, Waltio supports holders of digital assets in their endeavors by offering personal guidance tailored to their situations. To take advantage of our services or for any information requests, you can visit our website or send us your specific requests directly by e-mail to support@waltio.com.
Disclaimer: Our tool and our team are dedicated to helping you with your calculations and tax obligations. Waltio does not provide financial or tax advice.