The exchange stated that it has joined hands with experienced tax advisors to verify that the service complied with the country’s regulations for paying bitcoin taxes. Users may feed their crypto transaction data into a tax filing platform like TokenTax and prepare a report to be submitted with the tax agency – the Internal Revenue Service in the United States, the Canada Revenue Agency, and the Australian Tax Office (ATO).
The exchange claims that it provides the facility at no cost to customers, regardless of whether they are reporting profits or losses. Crypto users, on the other hand, will almost certainly need to have trading accounts with endorsed exchanges and wallets in order to furnish the authorities with a full tax documentation.
Users of Coinbase, Kraken, Binance, Binance.US, BitBuy, and other exchanges may now utilize Crypto.com’s tax reporting facility. In several instances, Australian authorities, like those in the United States and other countries, regard selling crypto holdings to be a capital gains transaction that must be taxed appropriately.
Cryptocurrencies used for purchase of products and services in Australia, on the other hand, are not treated as income if the amount is less than $10,000 AUD, or approximately $7,340. The ATO issued a warning in May to any cryptocurrency users paying taxes in Australia to properly declare any earnings.
Furthermore, the government agency said that it expected 600,000 Australians who had invested in cryptocurrencies to file taxes, and that it intended to contact another 400,000 to urge them to examine previously filed tax returns for any potential inconsistencies.