Tax and legal guidance in a changing digital landscape

The world of crypto is still developing rapidly – technological development goes hand in hand with tax and legal complexity. Despite increasing regulation within the Netherlands and Europe, the application of tax legislation to these digital assets remains unclear in many cases. This creates challenges and opportunities, particularly for high net worth individuals, entrepreneurs, and organizations active in the crypto economy.

HVK Stevens offers in-depth guidance on these issues, based on an integrated tax and legal approach, with precision, tax acumen, and strategic insight.

Crypto advice: more than technology

Since the emergence of Bitcoin, a new economy has emerged, with numerous applications:

• Cryptocurrencies and stablecoins
• Non-fungible tokens (NFTs), Decentralized Finance (DeFi) and Decentralized Autonomous Organizations (DAOs)
• Setting up crypto structures for entrepreneurs and investors
• Tokenization of assets and new forms of financing (e.g., SAFT)

These innovative applications raise tax questions about, for example, income tax, VAT, and structuring. With their technical background and years of experience in this field, the specialists at HVK Stevens provide sharp analyses and offer practical, workable solutions.

Individuals and crypto tax: points to consider

Returns on crypto assets can be generated in various ways: through trading, mining or staking, airdrops, automated trading, NFT sales or (yield) farming. The tax treatment of these returns is not uniform:

• In principle, income is taxed in box 3, but depending on the nature and intensity of the activities, it may also fall under box 1.
• Each source of income must be assessed separately
• In some situations, there is a source of income, which leads to additional obligations towards the tax authorities

More and more often, the question arises as to how cryptoassets can be classified most efficiently for tax purposes. The distinction between private assets (box 3) and holding them through a private company can have major consequences for the tax burden, the possibility of offsetting losses, and flexibility in future transactions.

Correct classification and structuring prevent surprises when filing tax returns or in response to questions from the tax authorities.

HVK Stevens: in-depth expertise in crypto 

Our professionals have been gaining experience in the rapidly evolving world of cryptocurrency since 2017. This enables us not only to closely follow new developments, but also to translate them into useful insights in a timely manner. HVK Stevens advises private individuals, entrepreneurs, and funds, with an eye for the specific tax and legal challenges that this sector entails. Drawing on this expertise, we make complex crypto-related issues understandable and manageable, including:

• Tax classification of crypto income (box 1 or box 3)
• Corporate income tax and VAT on token issuances, NFT sales, and crypto assets
• Structuring of crypto investment vehicles and projects
• Payment and valuation of remuneration in crypto
• Responding to letters of inquiry from the tax authorities

The combination of tax and legal expertise ensures an integrated approach that is both compliant and future-proof.