Introducing Binance Tax: Streamline Your Tax Season Experience
Main Takeaways
Filing taxes can be a confusing, cumbersome, and time-consuming process for many crypto users.
Our brand new Binance Tax assistant helps users with their crypto tax liabilities on up to 100,000 Binance transactions — at no extra cost.
Binance Tax is now available on the web version of Binance.
Meet Binance Tax, your new best friend for tax season, designed with the volume and complexity of Web3 transactions in mind.
Tax season is a dreaded time of the year for many — especially crypto users. Scouring a spreadsheet and computing all your transactions, gains, and losses throughout the past year can be, well, taxing. For day traders, who normally deal with thousands of transactions yearly, this means putting in extended hours to ensure the accuracy of their filings come tax reporting time.
If you’re struggling to stay on top of your crypto taxes or simply looking to speed up the process, make sure to check out our recently launched crypto tax calculator, Binance Tax.
With just one click, you can now import your Binance transactions into our calculator and obtain a simple yet comprehensive estimate of your tax obligations according to your jurisdiction.
Binance Tax is still in its early launch phase, so its algorithm doesn’t yet cover all transaction types within our vast ecosystem. Binance users should adjust their final tax reports accordingly.*
Why Use Binance Tax?
Around the world, the rules on crypto taxation are constantly evolving. We understand that because of this, many of our users — including experienced traders — find filing their taxes challenging and time-consuming. The Binance Tax tool helps you stay up to date with your crypto-related tax liabilities and offers a number of tangible benefits.
Free to use
While other platforms may charge fees based on the number of transactions on your report, Binance offers users access to its advanced tax tool at no additional cost. Our system supports up to 100,000 reported transactions, accommodating even the most prolific Binance users.
Comprehensive reporting
The Binance Tax assistant provides detailed information on the transactions you make within our ecosystem to help you file your taxes, including but not limited to: spot trades, crypto donations, and even blockchain fork rewards.
Please note that, as mentioned above, some transaction types are still in the process of being implemented into the Binance Tax tool. *
Worry less, explore more
Review your Binance transactions in one go on a user-friendly platform instead of manually going through each transaction. We built the Binance Tax assistant so our users could spend less time worrying about their taxes and use that time to explore the endless opportunities offered by Web3 instead.
How to Make the Most of Binance Tax
The Binance Tax assistant is a powerful tool that can help you with your crypto tax reporting. Here are a few pointers to keep in mind so you can get the most out of it.
Cost basis
The Binance Tax tool supports frequently used cost basis methods, including First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and Average Cost Basis. It will provide a summary of your gains and losses based on the selected method.
Tax reports
The Binance Tax assistant offers three types of transaction reports:
Capital Gains
Income Gains
Transaction Report
In certain countries, each report is based on specific tax calculation rules to ensure it’s generally aligned with local methods. Other countries are based on generic tax rules that may not reflect your country’s crypto taxation framework. We’re working to add tax rules for more countries, so stay tuned for more news.
Please be advised that Binance Tax and the reports it generates are estimates intended to support you in determining capital and income gains that you may need to report as a part of your annual tax filings. It does not constitute tax advice and includes only Binance transactions; therefore, the data may not be complete.
You should always verify your gains and losses calculations with an independent tax professional before filing your taxes. Please note that the Binance Tax tool is subject to this disclaimer.
Available on Binance Web
Binance Tax is available on the web version of Binance. We’re continuously working hard to implement support for more country-specific tax rules, as well as your favorite networks and wallets outside of Binance.
*Disclaimer: As of May 23, 2023, Binance Tax does not support certain Binance products, such as Futures and NFTs.