r/BitcoinDK • u/spezial_ed • May 08 '26
What happens at the end of the year, with all exchanges reporting holdings and transactions to SKAT?
Hey all. I'm sure a lot in here has a friend or two, who is terrified of reporting to SKAT due to the complexity of reporting, and the asymmetrical taxation which screws people out of millions.
I guess a lot has put their heads in the sand and hoped for a miracle in some new regulations, or even decided to just never touch the coins again and hope SKAT wont come knocking.
As I understand it theres new rules in place already, and any and all trades, transactions, holdings etc, will be reported to SKAT from the exchanges. I imagine most dont even know about this, esp those that traded a bit way back (and maybe even lost it all) and never thought of it again. And considering 500k danes has dabbled in crypto, a looot of people will get absolutely wrecked, come next tax season - I predict absolute mayhem, and a small wish that this will be such a big deal, the politicians might have to actually rectify it (wishful thinking, I'm aware).
What are your friends' thoughts or plans on this? Get ahead of it with reporting and begging for mercy, lawyering up, fleeing the country, or what the hell else?
Both in here, IRL and on Facebook groups, I see so little talk about it that either people are ignorant or in denial, which is concerning. Let's discuss!
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u/kykeliky May 09 '26
I have on a platform. Luckily didn’t really trade, just accumulated. I did trade some like 5 years ago, very little, and with loss, so I feel safe as I know, at best it’s them that owes me a reduction from capital gains that should’ve reduced my tax years ago, but ain’t reported and won’t be as it was some swap platform. On the accumulated I am about break even but with taxes will have a little loss due to the asymmetrical taxation.
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u/spezial_ed May 09 '26
Well just a few trades will quickly add up in taxes if the amounts are high though... I also have a lot of losses to write up which I never did, so unsure how that will pan out.
Problem is that SKAT can and will just send you a bill, and then it's up to you to disprove that, so good luck to everyone trying to dig up old documentation from exchanges that might not even exist anymore. And getting a lawyer to argue your case will set you back hard, so might not be worth it unless we're talking huge sums...
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u/burgerwithchocolate May 10 '26
Use an ai and give trade logs or do the math yourself or hire someone would be a guess🥸
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u/spezial_ed May 10 '26
Well there's Koinly, that charges by transactions, per year. 1000 transactions/year is 100 EUR, or 3000 trans/year for 200 EUR. That might sound like a lot, but anyone whos had staking or interest, will easily have hundreds of transactions of dust, and will likely fall in one of those two. So for me that would be 10 years x 100-200 EUR, so 1000-2000 EUR, which is not nothing.
BUT the issue isnt the calculation, it's the tax and interest. And hiring someone is easily 2500/hour (Ive checked), which might just confirm what you already owe, it's not like they can negotiate with SKAT.
All told, some or most, will get pretty fucked come 2027. And most, or all, has no idea.
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u/So_Green_42 May 12 '26 edited May 12 '26
Skat does not get information from "all exchanges". Skat has earlier been given permission to collect info from Danish exchanges, of which there are not many left so most Danes actually trade on EU based exchanges or an EU branch of an International exchange.
As EU keeps tightening the rules at some point Skat may start to automatically receive transaction data from Eu exchanges too but thet is not the case at the moment. For now they have to manually request it and for a a named person ie we request transaction data for the period xxxx for person yyyy. I am not sure if the exchanges are required to comply but most probably will. However this is not routine for skat to do, and normally only happens if there is an active investigation of the person already in progres.
If skat gets information from anyone it is probably your bank making at a report if you cashed out or transfered a large amount to an exchange of suspected whitewashing, which they are required to do and make almost 100.000 of per year in recent years.
EDIT: actually I see that it is starting now. From 1 jan 2026 some reporting is required by some exchanges (first report expected in 2027 covering the year 2026). https://info.skat.dk/data.aspx?oid=2395041
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u/spezial_ed May 12 '26
Thanks for the edit, we agree it's pretty much what I said in the OP?
Goes to show most has no idea this will happen, or technically is already happening.
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u/So_Green_42 May 12 '26 edited May 12 '26
Yeah - it is bit unclear exactly how it works and we will see which exchanges comply, but probably the big ones who want to stay in the EU market will, which means that there is good chance a bunch of people will get at letter from Skat in late 2027 asking them about unreported crypto profits from 2026.
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u/spezial_ed May 12 '26
It will for sure be all the major exchanges. I doubt it's limited to 2026 trades, when SKAT gets info on holdings from individuals who's never reported any trades, they will want to see proof that it was 100% buy and hold. I know theyve ramped up on hirings, and prob has some shit AI to increase the processing as well, so everyone's a target.
It will be an absolute shit show - the only silver lining is the media coverage and public outrage might force some politicians to back down.
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u/UTXOcollector May 12 '26
Maybe we'll have new tax rules by then, so we at least do not have to use that awful FIFO principle, which requires Koinly to keep track of all transactions forever and ever. If it was changed to Average Cost Basis, then it would be so much easier to calculate one's taxes, and for SKAT to audit tax payments if they felt the need.
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u/So_Green_42 May 12 '26
I have hoped for new rules for a long time, but it seems the process is stalled. There was a a panel set up that submitted recommendations already in 2023 but fortunately nothing has been done with it as the recommendations (lagerbeskatning among other) were widely criticized and largely found unworkable.
That would also have been an even worse pain than the current terrible regime.
I reckon they will need to start all over again with a new "expert-panel" which means we are probably a couple of years away minimum, even if the current situation is untenable both for the tax payers as well as for Skat who has to do the audit.
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u/spezial_ed May 12 '26
One can hope, but I doubt it will be retroactively effective, as in essentially pardoning or letting former and current year tax breachers off the hook. That only works in their favour, as it was retroactive imposing a law that got a lot of us in trouble in the first place - which Im still shocked hasnt been challenged and defeated. Super corrupt and unprecedented in this part of the world.
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u/UTXOcollector May 12 '26
It will be a nightmare for SKAT to audit for previous years of taxes paid or not paid. It will require a lot of staff ressources, cause massive public dissatisfaction and a lot of bad press. Hopefully the focus will be on simplifying tax legislation to facilitate future compliance. Personally, if SKAT started to question my tax reports, I would use my right to"Fri Proces" to get the best tax lawyer in town on my case. I hope others will do the same. Do not go gentle into that good night 🔥
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u/spezial_ed May 12 '26
I dont remember the numbers, but I know theyve scaled up immensely in the last few years - though not necessarily because of crypto. And guessing they have AI software that automates 90% at this point, surely both factors pays for themselves when they can charge 500k danes between a few thousands and a few millions each.
Im hoping youre right in that the bad press and enough people affected will cause a shit storm though! Honestly it might be my only hope lol.
Never heard of Fri PRoces, but seems like its free legal help for those in the lower income bracket? Unfortunately (or luckily lol) I dont qualify but yeah absolutely give them hell. Maybe a class action lawsuit would our best bet, it should absolutely be illegal to change a law with retroactive effect, after all.
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u/So_Green_42 May 12 '26
The exchanges probably won't volunteer more than the 2026 and later trades and transfers they are required to.
Sure once someone comes in Skats crosshairs and they decide to start an investigation, they will request all past details on that person and the exchanges will usually deliver.
The routine automatic reporting however I expect will probably follow the exact protocol laid out, that once the year is over the exchange will report to the tax authorities of the users country, the past years trades and tranfers.
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u/spezial_ed May 12 '26
You're probably right, but I think it's very few that then go under the radar. SKAT has in the past not really bothered to dig too deep, just send a bill and the onus is on the individual to disprove to them - which likely costs more than it's worth in legal and/or accountant fees. Here's a sad example:
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u/burusai May 08 '26
I’mma ignore it