Crypto.com has expanded its free tax reporting system to crypto users in Australia. Crypto users in the country can now use the exchange to generate their tax reports.
In an announcement made on August 13, Crypto.com said it made changes to the existing tax services it had in place for Canada and the US to allow Australians to use the service. Through collaborations with professional tax advisors, they were able to come up with a system that follows the laws for filling cryptocurrency taxes in the country.
Crypto.com only lets users with accounts on Coinbase, Bitbuy, Binance.US, Kraken, and Binance use the tax reporting service. Users with other exchanges and wallets will not be able to access it.
How the tax reporting system works
The tax reporting system works by allowing crypto users to import their transaction records to tax reporting platforms including TokenTax. A report is generated and later filled by the
Australian Tax Office (ATO). The service is free whether the users report gains or losses.
The exchange promises the service will allow Australians to generate quick, organized, and accurate tax reports. It will also include transactional history, records of short and long-term capital gains and losses along with other untaxable transactions.
CEO and Co-Founder of Crypto.com, Kris Marszalek, announced his excitement about the project. He explains that his company has always felt the need to create an easy-to-use crypto platform.
ATO taxation on cryptocurrency
Recently countries such as the US and Australia have considered the liquidation of crypto holding capital gains which will be taxed in some cases. Despite this, the Australian government does not tax cryptocurrencies used to pay for goods and services as income if they are under 10,000AUD.
A report by the ATO estimates that between 500,000 and 1 million of its citizens own crypto assets.
A warning was released by the ATO in May to ensure crypto users in Australia fill their tax reports correctly in the event of profits made. The agency said it expected 600,000 citizens with digital assets to file their taxes. They expected to contact 400,000 more to inform them to review tax returns they had logged previously and check for inconsistencies.