Binance Tax will assist users to understand their crypto tax liabilities at no extra cost.
Binance, a leading cryptocurrency exchange platform, has launched a tax reporting tool for its users. The Binance Tax tool is aimed at helping users accurately report their crypto-related taxable income to their country-relevant tax authorities. The tool supports reporting of up to 100,000 transactions, such as users’ trades, sales, and other taxable events and generates tax reports that users can then use to file their taxes, at no extra cost.
“In one click, you can now import your Binance transactions into our calculator and obtain a simple yet comprehensive estimate of your tax obligations depending on your jurisdiction.”
Available in a pilot phase to users based in Canada and France, Binance Tax includes features such as cost-basis calculation, capital gains and losses calculation, and tax form generation. The launch of a crypto tax reporting tool is a significant development for the digital assets industry, showing that cryptocurrency exchanges are taking the issue of tax compliance seriously and are committed to helping their users stay on the right side of the law.
Binance Tax launches one month after the exchange announced its joining of the Association of Certified Sanctions Specialists (ACSS) to comply with sanction standards within the crypto industry. Beyond ACSS compliance, several countries have tightened their grip on taxation of crypto assets. In the beginning of the year, Italy introduced a 26% tax on crypto trading gains, while India approved up to 84 months of jail time for noncompliance with reporting requirements.
The tool is still in the stages of development, and will take some time to be ready for a global launch. Still, many active traders anticipate that such tax calculators will ease the process and shorten the hours required to properly file their crypto taxes.