Cryptocurrency exchange Crypto.com has launched a free tax reporting service for users based in Australia.
In an announcement today, Crypto.com said it had tailored its existing tax services for United States- and Canada-based crypto users to allow Australians to accurately report cryptocurrencies on their taxes. The exchange said it worked with professional tax advisers to ensure that the service was consistent with laws for filing cryptocurrency taxes in the country.
Crypto.com allows users to import their crypto transaction records into a tax reporting platform such as TokenTax and generate a report to be filed with the authorities — the Internal Revenue Service in the United States, the Canada Revenue Agency and the Australian Tax Office, or ATO. The exchange says it offers this service at no cost to users, whether they’re reporting gains or losses.
However, crypto users likely need to have accounts within supported exchanges and wallets to provide a complete tax record for the authorities. Crypto.com currently allows users of Coinbase, Kraken, Binance, Binance.US, BitBuy and others to take advantage of the tax reporting service.
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As in the United States and other countries, Australian authorities consider liquidating crypto holdings as a capital gains event in many cases and to be taxed accordingly. However, cryptocurrencies used as payment for goods and services in Australia are not taxed as income provided the cost is under 10,000 AUD, or roughly $7,340.
In May, the ATO released a warning for any crypto users filing taxes in Australia to accurately report any profits. At the time, the government agency said it anticipated that 600,000 Australians who invested in digital assets would be filing taxes, and planned to contact 400,000 others to encourage them to review previously lodged tax returns for any possible discrepancies.