- The free tool supports 100,000 transactions, excluding NFTs and futures trading.
- Per the announcement, Binance’s users in other countries will ‘soon’ get the service.
Binance has introduced a new crypto tax calculator to enable taxpayers to compute their tax obligations – available for users in Canada and France. Following the announcement, the platform’s native token, BNB, climbed to an intra-day high of $330 Monday, with weekly gains at 6.36%, according to data from CoinMarketCap.
Binance Tax is a free tool supporting 100,000 transactions, including spot trades, crypto donations, and blockchain fork rewards. However, futures trading and NFT transactions are not supported on the calculator, according to a blog released on Monday, which also noted that the project was still at the initial stage of development.
The New Tool Automates All the Processes Involved in Calculating Tax Liability
Instead of manually going through transactions while filing tax, which can be hard for a day trader, Binance Tax is automated. ‘‘In one click, you can import your Binance transactions into (the) calculator and obtain a simple yet comprehensive estimate of your tax obligations depending on your jurisdiction,’’ Binance said. The new system would reportedly be available in Canada, France, and later other countries.
It is touted as a unified system for accessing all of the users’ transactions in one interface, simplifying the tax filing processes, which is complicated due to the early stage of the industry across the globe.
Many countries are moving swiftly to tax crypto transactions. For instance, last year, Italy introduced a 26% tax on crypto trading profits above 2,000 euros, or $2,160. Portugal also added a 28% levy for digital assets held for less than a year. The Southern European nation also included gains from crypto and mining operations issuance for tax purposes.