The easy-to-use service has country-specific tax calculation formulas. This makes the tedious and complicated task of crypto tax calculation and filing a lot easier.
Crypto.com announced the launch of a crypto tax calculator. The Crypto.com Tax service is currently only available in Canada but will soon be available in other markets. It was developed with the guidance of professional tax advisors to ensure strict adherence to and compliance with available laws for the filing of crypto tax. The service is completely free.
How the Crypto Tax Calculator Works
The easy-to-use service has country-specific tax calculation formulas. This makes the tedious and complicated task of crypto tax calculation and filing a lot easier.
Users can upload their crypto transaction history from supported crypto exchanges or wallets through a CSV file. API synchronisation is also available with major platforms like the Crypto.com app.
This data is then calculated using region-specific formulas and in a few minutes, an estimation of taxable gains/losses on relevant crypto transactions is availed to the user. The user can then download this report and use it in their tax filing.
Some exchanges listed on the Crypto.com Tax site are Bitbuy, Coinbase, Crypto.com, Coinomi, Binance, Bittrex, Blockchain.com and Shakepay.
The Relevance of Tools Like Crypto.com Tax
With the recent mainstream adoption of cryptocurrencies, calls for proper regulation have increased. Some institutions and governments remain sceptical of all digital assets. Others have completely embraced the crypto-wave, with some major corporations adding Bitcoin to their balance sheets.
A sizable number remain on the fence when it comes to cryptocurrencies. While the traction gained is undeniable, the ‘volatility’ and lack of regulation in some places have been cited as reasons for this continued ambivalence.
On-going attempts to better-regulate cryptocurrencies along with tools like Crypto.com Tax may change this.
Governments’ Stance on Crypto Taxes
Tax laws on cryptocurrencies vary from country to country. In Singapore, for example, under the Payment Services Act, cryptocurrencies are viewed as digital tokens. The capital gains on bitcoin as a security token are tax-free as there is no long-term capital gains tax in the country.
According to Rahul Pagidipati, CEO of ZebPay, In the US, cryptos are treated as a hybrid asset class. He noted that “if it’s a security token, then SEC will come into picture. if it’s a commodity token, then commodity commission, or if it is a stable coin, then Federal Reserve will have a role to play”.
In Australia, hybrid classification is widely agreed upon in the industry as long as double taxation can be avoided.
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