How to calculate your Binance Smart Chain crypto taxes

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Sam Adams
Samantha Adams
Head of Content

Recap has a comprehensive integration with Binance Smart Chain that makes it easy to manage your crypto tax calculations. Sign up for Recap and link your Binance Smart Chain wallet to securely monitor each transaction, manage your cryptocurrency portfolio, and effortlessly automate your taxes.

*Disclaimer: The information provided in this content does not endorse Binance Smart Chain. 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 Smart Chain?

Binance Smart Chain is a blockchain launched in 2020 that has smart contract capability and is compatible with Ethereum Virtual Machine (EVM).

How to automate your Binance Smart Chain crypto taxes with Recap

You can make the process of calculating your taxes stress-free with our crypto tax software. Connect your Binance Smart Chain wallet to Recap, and our system will classify and value all transactions using our unique fair-market valuation engine and determine your tax liability based on HMRC, IRS, or SARS tax rules.

How are Binance Smart Chain Transactions Taxed?

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

  • Deposits: Not a taxable event. Tracked for portfolio management.
  • Withdrawals: Not a taxable event. Tracked for portfolio management.
  • Buying Crypto with fiat: Not a taxable event. Tracked for future capital gains calculation.
  • Crypto to crypto: Taxed based on jurisdiction-specific capital gains rules.
  • Selling Crypto: Taxed based on jurisdiction-specific capital gains rules.
  • Earning staking rewards: Usually an income tax event.

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

How to File Binance Smart Chain Taxes: A Step-by-Step Guide

Recap makes filing your crypto taxes super simple!

  1. Link your Binance Smart Chain wallet with Recap
  2. Review your transactions, ensuring all transactions are recorded and accurate
  3. Download your automatically generated capital gains and income tax reports ready to file, or send an invite to your accountant, who is completing your tax return on your behalf.

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FAQs

Do I have to pay tax on my Binance Smart Chain transactions in the UK?

Yes, cryptocurrency is taxable in the UK, so if you are making taxable disposals or receiving taxable income on Binance Smart Chain, then you may need to report and pay tax on your activity. Take a look at our UK tax guide to understand when tax applies.

Can Recap support my company’s Binance Smart Chain transactions?

Yes, if your company has cryptocurrency on its balance sheet, you can connect your Binance Smart Chain wallet to Recap and put your record-keeping on autopilot. If your company is crypto-native, then we recommend exploring other crypto-accounting software built specifically for businesses.

Will my crypto in my Binance Smart Chain wallet be taxed?

No, crypto in your Binance Smart Chain wallet will not automatically be taxed, but if you have generated any taxable events, you may need to report and pay tax. To understand how crypto is taxed, take a look at our comprehensive tax guide.