The Taxation of Cryptocurrencies in Ireland

While cryptocurrencies are not legal tender in Ireland an investment in them is subject to taxation.

Revenue’s view is that an investment in cryptocurrency is the same as a share investment and accordingly should be subject to Capital Gains Tax at 33%.

If you are dealing in cryptocurrencies you need to make a declaration to Revenue even if you have incurred losses.

A PAYE individual needs to complete a CG1 Return whereas a self employed individual can declare it on Form 11.

CGT on profits made between January 1 and November 30 must be paid by December 15 of the same year and December CGT must be paid by the following January 31.

If an individual is dealing regularly in cryptocurrencies accounting for the profits/losses made can be complicated as you need to identify the profit or loss made for each transaction.

It is extremely important therefore that you keep a detailed account of all your transactions to calculate accurately the CGT liability and also because Revenue may request it.

Losses in one cryptocurrency can be offset against profits in another for CGT purposes and if losses are unused they can be carried forward into future years.

Revenue are scrutinising cryptocurrencies and it is recommended that any individual who has traded in them in the past and not made a declaration to Revenue should do so immediately.

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