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Binance Tax is the latest addition by the Binance team, which will enable Binance users from two countries to calculate crypto taxation without paying a single penny. However, this is a new product from Binance and may or may not be ideal for every crypto user.
Read on to find out what we know about Binance tax and some alternatives you should know about.
Summary –
Binance tax is a new tool launched by the Binance team to help you calculate your tax liabilities for free. This tool is only available to Binance users in Canada and France at the time of writing. You can calculate your tax liability for transactions up to 100k. Generate tax reports within minutes. Works only for transactions made on Binance account. They may add support for other platforms in the future. Binance does not support some Binance products such as Tax Futures and NFTs. What do we think about the Binance Tax Tool?
Taxation is one of the biggest headaches when it comes to dealing with financial products of any kind, and crypto is no different. Many users use Binance as their only crypto exchange, and having an in-built crypto taxation tool and report generation tool will save a lot of time.
At the time of writing, the Binance Tax tool supports transactions of up to 100K, which should be ideal for any basic or power users. This is a pilot launch of the tool, and if Binance continues to add more features, it will not only help end users, but also allow many crypto users to transact using only the Binance exchange.
The Binance Tax tool has some significant limitations at this time –
Binance futures and NFTs are not included in this tax instrument. Transaction limit of 100K, which may not be ideal for Power Grid bot users or scalp traders. Only works for transactions made on the Binance exchange. If you use a private wallet for DeFi transactions, you should use a companion tax tool. Available only to users in Canada and France.
These limits may be fixed as the Binance team continues to develop the tool. Here are some alternatives to Binance tax tools that you can use if you are using more exchanges and private wallets or if you live outside France or Canada.
Note – This above mentioned tax tool supports multiple exchanges, including Binance and private wallets such as MetaMask, Trust Wallet and Ledger as well.
Check Out – Best Crypto Tax Software
If you are a Binance user and are from Canada or France, I would love to hear your feedback and experience using the Binance Tax tool. What are the features that you liked or that you think should be integrated in the future?
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About Harsh Agarwal:
An award winning blogger with a track record of 14+ years. He has a background in both finance and technology and holds a professional qualification in Information Technology.
An international speaker and author who believes in the blockchain and crypto world.
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Specialization:
Harsh has 12+ years of experience in FinTech and 7+ years in Blockchain and Bitcoin. He has also moderated panels of blockchain experts and participated in international blockchain events such as BTCMiami, and Token2049.
