How to calculate your Binance taxes

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1 min read
Last updated:
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Sam Adams
Samantha Adams
Head of Content

Recap makes it easy to calculate your Binance crypto taxes. Sign up to Recap and link your Binance account to import your transactions automatically. Where Binance does not provide some data thorough their API, Recap makes it easy to complete the picture by using our statement manager.

*Disclaimer: The information provided in this content does not endorse Binance. Furthermore, it does not constitute tax advice. If you are uncertain about any financial or tax-related matters, we strongly recommend seeking guidance from a qualified tax professional. Additionally, you may utilise our accountant and professional advisor sharing features.

What is Binance?

Binance is the largest crypto exchange by trade volume and allows investors to buy and trade a wide range of crypto assets including Bitcoin, Ethereum and NFTs.

Here's a breakdown of what Binance offers:

  • Buying and Selling Crypto: Purchase and sell popular cryptocurrencies like Bitcoin and Ethereum directly on the platform.
  • NFT Marketplace: Buy and sell Non-Fungible Tokens
  • Auto-Invest: Auto-invest in crypto assets using a dedicated platform
  • Margin Trading: Use borrowed funds to bet on the price of a crypto assets going up or down.

How to automate your Binance crypto taxes with Recap

You can make the process of calculating your taxes stress-free with our crypto tax software. Connect your Binance account to Recap, and our system will classify and value all transactions using our unique fair-market valuation engine and determine your tax liability.

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How are Binance Transactions Taxed?

Tax implications on your Binance transactions differ based on transaction types and your tax jurisdiction. Here are the tax guidelines for the different transaction types on Binance:

Transaction typeCGTIncomeTracked in Recap
Deposits
Withdrawals
Buying crypto with fiat
Crypto to crypto
Selling crypto for fiat
Earning staking rewards
Defi Interest
Airdrops
Dust transactions

Refer to our tax guides for a more detailed look at crypto tax rules.

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Automate your Binance tax reporting - takes 5 mins.

  • 1

    Sign up to Recap

  • 2

    Set up auto sync with our step by step guide

  • 3

    Generate your tax report ready to self-file or share with your accountant

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FAQs

Do I need to pay tax on my Binance transactions?

Yes, you may need to pay tax on your Binance transactions. Tax obligations vary depending on your country’s tax laws and the nature of your transactions. Common taxable events include selling cryptocurrency, trading between coins (crypto to crypto), and making purchases with crypto.

Do tax authorities know about my Binance transactions?

Tax authorities like HMRC may become aware of your Binance transactions through various means, such as data-sharing agreements between crypto exchanges and tax authorities or during tax audits. It's essential to report your crypto transactions to avoid penalties accurately. Using a crypto tax software like Recap can help ensure your transactions are properly recorded and reported.

What is the benefit of using a crypto tax calculator?

A crypto tax calculator automates the process of calculating taxes on your cryptocurrency transactions, providing accurate tax liability figures and ensuring compliance with tax regulations without manual calculations.

Does Binance report to HMRC?

Yes, Binance may report your transactions to HMRC. As a UK taxpayer, your cryptocurrency transactions on Binance and other platforms are subject to capital gains tax and income tax. Regardless of whether Binance reports your data, it’s your legal responsibility to declare all your crypto earnings to HMRC. Staying compliant with tax regulations is crucial to avoid potential penalties - check out our comprehensive UK Crypto Tax Guide to learn more.