Over the past year, crypto traders totalling 3,300 persons paid some EUR 30 million taxes. However, crypto miners face even heavier tax burden, and everything indicates that this country is unlikely to become a good place for crypto businesses.
Miners in Finland have to pay taxes, with mining activities being considered as an employment. In this situation, the upper-end tax on over EUR 127,000 income is 65%. This means that, for example, EUR 33,000 yearly income is subject to 57% tax.
As for traders, they must pay 34% for up to EUR 30,000 or 30% for over EUR 30,000 yearly income. Taxes are reportedly assessed while trading vs fiats or paying for goods and services.
According to the news reports, the local fiscal service most likely tracks and monitor bank transfers to accounts connected with crypto platforms.
The notice about taxes was a big surprise to many traders. For reference, the total number of traders in Finland is some 3,300. Those who did not pay taxes will be able to make payments next year. In this context, the Finnish market can face a collapse, as traders will strive to withdraw money before paying taxes.