Tax reporting allows you to keep track of your crypto activity in order to ensure you are fulfilling the reporting requirements laid out by your regulatory bodies. With Binance, you are now able to have all your transactions tracked and accounted for automatically with our Tax Tool functionality.
Disclaimer: Binance does not provide tax advice. Depending on the country's regulatory framework, when you trade commodities and the event produces capital gains (or losses), you would have to pay taxes duly. The regulatory framework for taxation of cryptocurrencies differs from country to country, hence we strongly advise you to contact your personal tax advisor for further information about your personal tax circumstances.
How to file for taxes automatically via API?
If you need to file taxes and generate statements and transaction records of more than 1 financial year, you can use our Tax Tool API to automatically file taxes via third-party tax tool vendors.
Please note that the third-party tax tool software might charge you fees for their services.
1. Log in to your Binance account and click [Account] - [API Management].
2. Click [Create Tax Report API].
Please note that each user can only create one Tax Report API, and the tax tool functionality only supports read access.
3. Verify your request with 2FA devices or passkeys.
4. You'll receive your unique API and Secret Key for Tax Report. You can copy the keys to integrate them on the third-party tax vendors later.
5. Select a third-party tax tool (e.g., Koinly, BearTax) you would like to use. We will use Koinly as an example.
Visit Koinly’s website and select your base currency and home country.
Note: Binance is not endorsing any particular third-party tax tool software. The guide and accompanying screenshots are only an illustration. Please exercise your own discretion and/or consult your personal tax adviser based on your personal tax circumstances and requirements when selecting the third-party tax tools.
6. Go to [Wallets] and click [Add Wallet]. Select [Binance].
7. Label your wallet name, click [Setup auto-sync].
8. You'll see a Setup Binance API pop up. Enter the unique API key and Secret Key you received from the Binance Tax Report API. Then, click [Secure Import].
9. The API key will download your transaction history automatically and keep your data in sync. Your tax forms will be ready soon.
If you need to file taxes for your cryptocurrency investments, you can generate an account statement with transaction records of up to 3 months. For more details, please refer to How to Generate Binance Account Statements.
Frequently Asked Questions
1. Are there any fees for filing taxes via the third-party vendors through API?
Depending on the third-party tax tool software you use, they might charge you fees for their services.
2. Do I have to pay taxes when I buy or sell Bitcoin?
It depends on your country’s taxation requirements. For more information, please refer to the latest tax guide.
Please refer to How to Create API Keys on Binance?.