How to do your Binance taxes

What is Binance

Binance is an international digital currency exchange that was founded in 2017. With over 120M registered users and $38B daily trade volume, it is recognised as one of the largest cryptocurrency exhanges globally.

The benefits of using Binance for Australian investors are:

350+ cryptocurrencies to trade
large selection of products
low trading fees

Binance has the following tax reports:

Binance tax statement PDF
Binance tax CSV

Syla + Binance integration

✅ API sync

✅ CSV file import

Do you have to pay tax on cryptocurrency?

Ever since the ATO first introduced taxation guidelines for crypto back in 2014 it’s been clear that crypto is taxable. You can also read the most up to date ATO guidelines on crypto.

For most individuals, your crypto will be subject to capital gains tax. This means you must calculate the gain or loss on every transaction and declare the resulting capital gains.

The ATO has advised that Australian taxpayers must keep the following records:

receipts when you buy, transfer or dispose of crypto assets
a record of the date of each transaction
a record of what the transaction is for and who the other party is (this can just be their crypto asset address)
exchange records
a record of the value of the crypto asset in Australian dollars at the time of each transaction

How is crypto taxed on Binance

The type and amount of tax paid can vary depending on the transaction, asset type and your tax settings. Here’s just some of the transaction types that can occur on Binance, all with different possible tax outcomes.

Example tax treatment:

ordinary income - airdrops, commission, promotions and staking
deduction / capitalisation - brokerage fees and withdrawal fees
ordinary income / loss - futures and derivatives

All events involving cryptocurrency assets may result in acquisitions or disposals of a CGT asset.

As we all know, crypto tax is complicated, which is why most tax professionals recommend using crypto tax software to automate the tax calculations for you. That way you won’t make mistakes that could trigger an ATO audit.

If you want to know more about the different tax treatments, you can find detailed information in our ultimate crypto tax guide.

Does Binance report transactions to the ATO

Binance is a registered Digital Currency Exchange (DCE) with AUSTRAC. As an AUSTRAC registered DCE, Binance must perform KYC and know the identity of their customers. This is important for preventing scammers and criminal activity.

Since 2019 the ATO has been operating a data sharing program with Australian Digital Currency Exchanges. Under the data sharing program, the digital currency exchange must provide transaction data of their users to the ATO.

In short, the ATO knows your transaction history on Binance. You’ll know the ATO has your cryptocurrency transaction data, as it will show in the prefill report on your tax return. That means it’s important that you do calculate and declare your crypto gains, otherwise it’s only a matter of time before the ATO comes knocking.

What your tax agent can see on your prefill report for your tax return

API sync - how to create API keys

In the left sidebar, select Account and then click API Management.
Click the Create API button.
Ensure System generated is selected, and then click Next.
Enter Syla as the API key label, and click Next.
Copy the API key and paste into Syla.
Copy the Secret Key and paste into Syla. Note: the secret key is only shown once, if you can't see it, delete they API key and start again.

CSV file import - how to get your transaction history

There is one important Binance CSV file which you need to download to do your tax:

Transaction History CSV

In the top navbar, hover over the Wallet Icon, and select Transaction History.
In the top right, hover over the Export Icon, and select Export Transaction Records.
Select By Year, and then choose the Year required.
Click Generate.
The statements usually take a few minutes to generate and can then be downloaded.
Repeat the process for each year until your entire transaction history has been exported.
Upload the archived .zip files to Extract Me to extract the csv files.

PDF balances - how to download your account statement

There is also one important PDF statement from Binance:

Account Statement PDF

This account statement provides a snapshot of your balances on 30 June, which can be used to confirm your calculated balances in Syla match what is reported on Binance.

Hover over the Wallet Icon, and select Account Statement.
In the Date selector, select 30 June of the last financial year.
Click the Export button.
Change the Export Type to PDF.
Change the Export Range to Expand all position data.
Enter a File Password.
Click Export.
Check your email for your Account Statement.

How to do Binance taxes

Our Australian financial year starts on the 1 July and ends on the 30 June each year. You can prepare and lodge your tax return any time after the 30 June.

You have until the 31 October to lodge your individual tax return, or you can get an extended lodgement deadline till 15 May when lodging through a registered tax agent.

There are three ways you can complete your cryptocurrency tax return

do it yourself by hand in a spreadsheet 😭
provide your transaction statements to your tax agent / accountant
use crypto tax software to automate the calculations and optimise for lower tax.

If you decide to do it yourself by hand, then you will need to be very careful to track the individual cost base of each crypto asset, and calculate the capital gain or loss on each disposal. This might be okay if you only have a handful of transactions. 👍

Otherwise, you can use Syla to do your Binance crypto tax calculations and tax optimisation. You can also provide the final Crypto Tax Report you create in Syla to your tax agent, or you can use the report yourself to lodge your own tax return.

Important tips for Binance taxes and minimising your tax bill

Follow these tips for common gotchya’s that will save you time and lead to better tax outcomes.

Limit on exports - Binance has a limit on the number of exports you can do each month. If you run out, you can do the remaining exports next month.
Duplicate date ranges - If you have multiple CSV exports, make sure no data has been duplicated where exports have overlapping date ranges.
Missing data- If you have multiple CSV exports, make sure no data has been skipped between exports.
Withdrawal fees - are not included in the exported data. You can manually add the withdrawal fee to each withdrawal.
Credit Card purchases - sometimes do no appear in the account Transaction Statement CSV export, you may need to enter these manually.

Syla’s smart tax logic for Binance

You’ll find some really smart logic in Syla that is going to make doing your crypto taxes on Binance quick and easy.

Smart logic means that transactions are correctly classified for you automatically and all possible costs are claimed. That’s great, because you’ll have certainty in your tax and avoid paying more tax than you are legally required to.

Here’s just some of smart logic that has been specifically implemented for Binance that you’ll find in Syla’s crypto tax calculator:

smart grouping of Dust to BNB transactions
smart aggregating of trades
detection of airdrops, chainsplits and other distributions
detection of token migrations and rebases
detection of delisted assets
classification of mining, staking and earn programs
classification of derivatives trading
classification of rebates

Pay the lowest crypto tax and save the hassle of doing crypto tax yourself

It's very difficult to calculate all the tax outcomes correctly for your crypto by hand unless you're a tax professional.

If you are using a tax accountant, then you probably don’t want them doing it by hand either, as it's going to take a long time and cost a lot.

That’s why using cryptocurrency tax software can save you a lot of time that you’d rather spend doing something else. 😊

Syla is the only crypto tax software designed specifically and only for Australia. Syla not only calculates all your tax outcomes to ensure you are compliant to the ATO, but it also optimises your tax to ensure you pay the lowest crypto tax legally possible, saving you both time and money.

Syla is built specifically for Australian taxpayers
Syla’s tax logic is optimised by Australian tax lawyers to legally minimise tax
Syla’s Crypto Tax Reports are recognised by Australian tax professionals as being ATO compliant

You can get started in Syla for free.

FAQ

Does Binance have tax statements?

Yes, Binance has 1 Binance Account Statement in PDF format, and 1 tax CSV transaction statements (Transaction Statement CSV) that you can download. These are all important for completing your crypto tax calculations and record keeping.

How do I get Binance tax statements?

You can easily login and download your tax CSV statements. Once you have your tax statements, you can use crypto tax software to import your data and calculate your tax. Syla is a crypto tax software specifically designed for Australian taxpayers.

Does Binance have an end of year tax statement?

Yes, Binance has an Account Statement that you can download in PDF format. This document is helpful for your record keeping and substantiation of your activity. It’s hard to get the data from a PDF, so you’ll still need to download your tax CSV transaction statements to do your tax calculations.

Do I have to pay taxes on Binance?

Yes, Binance reports user transaction data to the ATO, and the ATO has been providing crypto tax guidance since 2014. You’ll be facing an audit and penalties from the ATO if you don’t declare your crypto gains.