Binance is introducing Binance Tax, a recently developed tool designed to provide users with convenient access to information regarding their cryptocurrency trading activities.
The free-to-use tax tool will become available to Binance African users for the first time starting in South Africa.
Users will be able to effortlessly retrieve a comprehensive report from Binance Tax, offering an overview of their profits or losses incurred on the platform. This report will serve as a valuable resource to aid users in effectively preparing and submitting their tax documentation.
The primary objective of this tool is to support users in preparing and submitting their tax reports by providing a straightforward and accessible method to understand their liability on the Binance platform. This came due to increasing customer demand for a user-friendly solution to comprehend their tax obligations on the platform.
By logging into https://www.binance.com/en/tax using their Binance account credentials, users gain access to a comprehensive breakdown of their trading activity.
Upon logging in, users can view a detailed transaction history, including their trades, and review the resulting capital gains and income generated from their Binance activities. To conveniently retain this information, users have the option to download various reports.
The Binance Tax assistant offers 3 types of transaction reports:
- The Capital Gains report
- Income Gain report
- Transaction Report
The above reports are provided to users in order to have a documented record of their trading activity on the platform.
“We’re always looking at how we can build products to make our customers’ lives easier and that often means listening and reacting directly to user feedback,” said Mayur Kamat, Head of Product at Binance.
“We heard that our users wanted an easier way to be able to see and understand their taxes, so we’re excited to bring this new, free-to-use tax tool to our community, starting in South Africa,” adds Mayur Kamat.
Binance Tax applies generic tax rules to help you determine capital gains, losses, and income generated through crypto transactions. Your Capital gains report will include:
- The acquisition date
- Sell date
- Proceeds from sales
- Cost basis
- Gains
- Holding period, and
- Transaction type
Similarly, your income gains report will include income gains and transaction type.
After conducting an initial pilot program in France, Binance has extended the availability of the tool to several other global markets worldwide. Although the feature is still in its early stages of development, its primary objective is to enhance users’ comprehension of transactions executed on the Binance platform in relation to their tax responsibilities.
At present, the current version of the tool does not offer integration with other platforms or wallets. However, there are plans underway to develop such integrations in the future.
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