Binance has introduced a new feature to prepare its users for the anticipated tax period. The global tax season is fast approaching; hence, several crypto firms are gearing up to help their investors with how they can follow local regulations and access their tax details.
Binance announced its plans to introduce Binance Tax. Binance chose to introduce this new feature as a result of the ever-growing amount of inquiries its customer base makes about their taxes.
This tax calculating tool will be useful to users in keeping updated on up to 100,000 of their crypto transactions for the upcoming tax season. Binance Tax will allow its users to access a copy of their tax summary report which entails all profits and losses, as well as spot trades and fork rewards on blockchains, their Binance account has experienced within the year. However, the report generated by Binance Tax does not include certain transactions, like futures and options trading.
At the moment, the feature is undergoing pilot testing in France and Canada. Before the end of the year, users in other parts of the world will be able to access Binance Tax. Binance has also revealed that the company hopes to partner with other players in the industry in the years to come. If Binance goes through with this possibility and successfully partners up with other companies, Binance Tax users will be able to access comprehensive tax reports on their accounts on other platforms.
Countries are introducing new crypto tax policies
Several countries around the world have begun establishing and imposing certain crypto tax regulations. In December 2022, India announced a new law that requires crypto investors to pay a 26% tax on profits greater than €2,000. According to the announcement, citizens can spend up to six months in jail if they fail to pay a 1% Tax Deduction at Source (TDS).
Months before that, the USA’s Internal Revenue Service updated its annual tax guide to account for cryptocurrencies, non-fungible tokens, and stablecoins. Iceland imposes a 40% tax on crypto profits of $7,000 and a 46% tax on profits higher than that. Other countries, like Israel, Japan, and the Philippines, also have strict tax regulations that have made them the worst regions for crypto taxation.