Bitcoin Forum

Binance exchange just launched a Binance Tax (a reporting tool). It is said that this is to help users calculate their tax obligations on crypto transactions..

According to them, it will be first available to Binance users in Canada and France and they are planning to extend it to more regions in the future.

If you're a Binance user and if it's available to your Country, what is the advantages and disadvantages of Binance Tax to you especially by using Bitcoin with their exchange?

Source: Binance Tax launched to prepare crypto users for the tax season (https://cointelegraph.com/news/binance-tax-launched-to-prepare-crypto-users-for-the-tax-season)

This will be welcomed by governments and is a positive move. I think all exchanges should have this by law because it helps people from getting stung by taxes because cryptocurrency is difficult with taxes. I think people should get a accountant to do the math for them but for people who cannot afford one might benefit from this. If this is made compulsory by governments then at least people will be covered and do not have to do the math themselves and make mistakes which could cost them in big fines.

The tool itself is an advantage for users of Binance who move large chunks of money and have to declare their income and every other details to their local authorities. I don't think there is any disadvantage on this tool. The disadvantage many people complain about is to have to declare income and pay taxes to the government, although it's an inevitable part of the deal when using centralized services.

To somebody who is planning to religiously pay his crypto taxes, then this is really advantageous. At least he is now guided on how to compute his tax as far as his crypto activities in Binance is concerned. But he has to make sure first that Binance's computation is based on the latest tax formula and policies in his country. They could change every now and then. To be honest, it is better to consult a local tax expert than Binance. Local tax experts know much better than whoever is assigned in Binance to come up with a tax computation.

To be honest, Binance coming up with this is not really necessary. But they must have thought of this to make them look good in the eyes of regulators.

Computing and submitting tax returns could be a hard job especially to those who are not sound in mathematical calculations. So this reporting tool will definitely help users to download their tax statements for any given period of time without stress. But it could be a challenge to some of us in developing world that have been enjoying tax exemptions due to the government's reluctance to acknowledge that cryptocurrencies are important investment platforms.
This tax reporting tool could however serve as an attraction to the government to become friendly to the sector because of the revenue they can get from the crypto industry. But I hope that Binance will not in future assist the government in collecting tax directly from users.

If they had moved and agreed with the corresponding countries they are operating in and made that tool as seamless as possible, that would be a game changer for users. Of course, there are a lot of people who are against it, especially those who are using Bitcoin because of decentralization. Still, you have to pay taxes on it to be legal, and that would be hard and exhausting to do on your own, so having that tool by Binance is a game changer.

Having that tool aligned with the country's tax laws, all calculations already dealt with would be computed, making lives easier. Hoping as well that it would lead to more crypto adoption with the giant Binance.

I see that Binance is doing very well towards governments, yes that is what governments like. Taxes and exchanges bring the most tax and control to governments, well done Binance you are getting liked by governments!!!

In any case, for users who do not care about their privacy or who are forced to do so, this tool will really be useful for them to calculate the taxes that they have to pay to the government before they enter into large investments.

Sometimes in some countries calculating crypto taxes is rather complicated so this tool is sure to come in handy.

Next thing Binance is going to reveal is the govtool where the governments have been logging into all these years to receive all the information of all the users so that they can detect their activities, find their addresses balances, etc. and bust anybody who they don't like ;D

This is also for Binance.US? Because the USA has the one of the most complicated tax requirements on cryptocurrencies, and it wouldn't make sense to launch this on only on the international site and eschew it for those other jurisdictions that have forced Binance to create subsidiary clones of itself for those regions.

This will be a helpful tool, I guess.
I don't use Binance and I don't plan using Binance in the future. 2 years ago, I tried creating a Binance account, but the ID verification was such pain in the a$$, that I just had to quit. I assume that there's probably a Binance account under my name right now, but the account cannot be activated and never will be.
Perhaps more crypto trading platforms would launch such crypto tax calculators. Each country has a different tax system and the assistance of tax accountants is required, in order to create a properly working tax calculator.
By the way, I wonder why Binance has such a low rating on Trustpilot... ;D

Don't know why it was relaunched, this tool was actually launched about 2 years ago ^[1] by the way.
Is there an improvement over the previous version, or will this be a more specific tax return file following the official format for each country? Binance web isb't accessible in normal mode in my country.

1. https://cryptobriefing.com/binance-launches-tax-reporting-tool

i'm already complaining before it will be launched in my country. i read the tools will compute each transaction you make. i have no problem paying but what i'm not curious is if the government will ask the taxes on the ancient transactions we did before the crypto tax law.

it's not fair actually for crypto users since our transactions are audited and can be seen on the public ledger. our taxes should also be seen where it's spent on the government's public ledger as well.

I think it's great news because it sounds like a huge step toward adoption. The government hates crypto because it can't tax it. So if Binance will solve this problem, we will probably see a mass crypto adoption pretty soon.

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Yeah, looks like Binance is moving in the right direction and probably gonna become the most adopted/legalized exchange in the next couple of years. I'm glad that companies like this represent the crypto industry.

There are some countries where this feature is useless, but overall it will make our life easier.
This is also maybe good news for everyone because even if the tax itself is of no use, some companies especially banks here in our country just asking some proof that you are trading cryptocurrencies before I am using just a screenshot and they are still accepting it.
Overall with this new feature, it's good for everybody.

That's how they last long in the market, if a centralized organization against the government has only one outcome, and that is death. CZ is really smart to take this step to please the government. Since the FTX collapse, binance has been the target of the US government, and I think this is the way to alleviate the government's anger to maintain their existence. This action will cause more misunderstandings for privacy lovers but pleases the government, and in this case, the government is more important to Binance  :) :).

I wonder how much percentage it would take from their crypto assets there, I mean whenever they do some transactions they will need to pay?

This kind of action by Binance makes their users even more convenient using their exchange and also people might need to consider using decentralized exchanges if they want to not cause any trouble with their crypto assets because we can see right now, this is one of the disadvantages of centralized where they know every move you take with your crypto assets as long it is in their exchanges.

Quite an interesting tool and really something new.But there are both pros and cons.If the user will independently transmit their data, this is good.But if the exchange in the future will transfer data directly to the tax service, this is not good.Of course, different countries have different laws, but the very idea of cryptocurrencies as anonymous payments is already being lost.More and more we are moving towards global control over cryptocurrencies.

It should be depends on the country where you come from, because each country has their own rule about income taxation, some even have specific rule for crypto taxation.

I think it's quite tricky how Binance will calculate the tax, does it's in fiat equivalent or in the crypto equivalent?

Let's say I get donation 1 ETH worth of $800, next 2 months I exchange 1 ETH for BTC and I get 0.071 BTC which is worth for $1,600. But in the end of the year I exchange my 0.071 BTC to ETH and I get 2 ETH, but it's worth for $1,200. It's confusing lol.

Agreed with what you said about local tax experts and whoever Binance is assigning to do the job however, I want to believe that Binance on the other hand might want to or will have to work with some local tax agents in doing this for different regions, especially in those regions where the Government has already accepted crypto-related transactions. I do however believe this is a good step for Crypto investors as a heads-up in resolving the issue of knowing what is due.

How will Binance determine the kind of job one does to earn crypto in order to know that if it's a type of job that would pay tax or not. How about someone just sending coins to you for normal purposes just like using bank to transfer money to someone, would the person need to pay tax because binace tax may likely calculate every transaction it sees without knowing the purpose of the transaction.
Every invention has pros and cons. I believe the invention will defer from country to country.

My question looks stupid but can I know how much will I have to pay my personal tax if I use my income to invest in Bitcoin and cryptocurrency?

How better or worse is it in comparison to tax from stocks, real estate investment?

I want to start to invest in Bitcoin but I am worrying about tax. Anybody can enlighten me about tax in this industry? How serious is it?

I'm not a tax expert, but it will depends on where you come from since each country has their own taxation rates.

Am just found average of real estate tax is 1-2% [1] while stock is vary from 0-20% [2] but it just tax, there are other charges and fees will required when you want to sell your property or stock.

Majority of country using income tax rate for Bitcoin, although some country have proposed their own rules for Bitcoin and altcoins, if I'm not mistaken India charge high fees around 30-40%.

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[1] https://www.mortgagecalculator.org/helpful-advice/property-taxes.php
[2] https://www.nerdwallet.com/article/taxes/taxes-on-stocks

It's advantage is, like you said it helps us calculate our tax easily when dealing with cryptos. Its disadvantage? Maybe crypto users or binance users are soon going to be taxed because why they did they come up with this idea then?

I think binance themselves already know the consequences of it that it might affect them in negative way because there might be users who don't want to deal with these stuffs knowing that what they are dealing with is only cryptos and they believe that it's not the same as fiats which can be taxed normally. When this new trend rises, this could help decentralize exchanges to become popular once again.

Afaik, If local regulations say that crypto taxes refer to value growth, they should be based on fiat values.

In my country, even the three are equal. It is best to contact your nearest tax expert if you are a compliant resident. With a few tactics you can actually avoid taxes, such as moving your residence to these countries (https://koinly.io/blog/crypto-tax-free-countries/).

From what I understand, this new tool is improved and has more features. The previous one is just an API that you can use to export transactions, while the new one offers a calculation tool and probably better integration with other platforms. Since they mention availability in France as the first step, I guess the new platform is integrated with the government's latest rules regarding crypto tax for each region.

I don't think what job the trader has is related in any way to crypto taxation. I believe in most countries would still tax you even if you're jobless but you trade crypto if they ever made it taxable. So a platform or a tool like this has no need for info like that, but of course you probably need to verify their calculation so that they don't mess your taxes instead.

Honestly, I don't see any disadvantages in it, whether you choose to use it or not, it's a cool tool, and will make some user's life much easier.

Usually when a new law is passed it can't be used retroactively to punish previous events, so you probably don't have to worry about past transactions. I don't know if it's a general consensus in every countries, though.

Doesn't your government have an online "transparency portal" where citizens can see what portion of their money is going to each sector, like education, health, security, infrastructure... ?

Actually, this tool is fine to help users from those countries to calculate their tax liability on crypto transactions. And the governments of these countries will see the huge tax liability of every citizen who uses crypto and of course, this is a huge income for the government.

And maybe Binance will report to each of those governments how much tax liability their citizens must pay. But this tax will be very large for crypto users if it is calculated from every transaction they make on Binance. But I'm curious about the reaction of Binance users from those countries.

Cryptocurrency has become an increasingly popular form of investment and transaction. With this growth, the government has started to take notice and look for ways to regulate and tax these transactions. To make this process easier for both the government and the individuals involved, I believe this tax reporting tool has been developed.

By paying crypto taxes, individuals and businesses can demonstrate their commitment to following regulations and keeping the government happy. This, in turn, could lead to a more favourable environment for the growth and development of the blockchain space. Taking care of crypto taxes is a crucial step towards ensuring a healthy and sustainable future for cryptocurrencies.

Well, the idea of cryptocurrency taxation is still new to me and I am yet to comprehend how it will happen. Although I am sure it will be done in country-by-country bases.
What I know about taxation in my country and with my little knowledge about economics, it's that it is pay-as-you-earn. Therefore he who earns not will not pay tax.

But with the development that binance is bringing, it means that even if one has to deposit money on binance just as you deposit in the bank you will also need to pay tax