THE HAGUE - The Dutch Tax Authority may be missing out on dozens of millions of euros because of the explosive increase in Bitcoin this year. This is because many people made the mistake of not submitting their crypto possessions. Earlier research by the European Commission estimated that the Netherlands misses out on almost 80 million euros in tax on capital gains from cryptos. 

Now that bitcoin has more than doubled this year and is moving towards $100,000, the missed tax amount for tax year 2024 is likely to be much higher. 

People are obliged to submit the worth of their bitcoins to the Tax Authority. This applies when the assets exceed 33,748 euros, where Bitcoin and other cryptocurrencies are included in the total assets. 

Despite this, the Tax Authority has a “limited view” on the size of the group of Bitcoin owners who wrongly do not file a tax return, a spokeswoman said. According to her, there is no reliable information available about the missed tax revenues. 

The Tax Authority has started working with experts in this area inside and outside the country to combat tax evasion. In addition, crypto services will be obligated to report all crypto transactions to the Tax Authority from January 2026. "The Tax Authority will also receive similar information from abroad from that date. Furthermore, the tax return file has been adjusted, and from 2025, we will ask even more specific questions about the ownership of crypto assets," the spokesperson said. 

The financial consequences for crypto owners who do not fill in their assets correctly can be severe. "They may face a fine of 300 percent on the tax owed," said the spokeswoman for the tax authority. 

"Our starting point, however, is to encourage taxpayers to fulfill their tax obligations as much as possible." According to her, no specific records are kept of how many fines have already been issued. 

The Tax Authority does not have any direct access to anonymous Bitcoin wallets as of yet as they are locked with a private key that only the owner knows. However, their use often leaves a money trail that the tax authorities can follow through linked services. Large deposits into a bank account that appear to come from crypto transactions can also attract attention.