Author
Nick Christie
Nick Christie
Co-Founder
Brisbane, Australia
For Accountants
PDF instructions

You can easily get your Digital Surge taxes done in Syla, ensuring you pay the lowest crypto tax legally possible.

Last updated
23
Jul
2023

What is Digital Surge

Digital Surge is a digital currency broker that was established in 2017. Digital Surge offers a uniquely easy way to buy, sell & store crypto in Australia.

The benefits of using Digital Surge for Australian investors are:

  • Australian based exchange
  • enjoyable and easy to understand trading experience
  • low fees
  • personalised customer support

Digital Surge has the following tax reports:

  • Digital Surge tax statement PDF
  • Digital Surge API data feed
  • Digital Surge tax CSV

Syla + Digital Surge integration

✅ API data feed

✅ 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 Digital Surge

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 Digital Surge, all with different possible tax outcomes.

Digital Surge transactions in Syla

Example tax treatment:

  • ordinary income - commission and interest
  • deduction / capitalisation - brokerage fees and withdrawal fees

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 Digital Surge report transactions to the ATO

Digital Surge is a registered Digital Currency Exchange (DCE) with AUSTRAC. As an AUSTRAC registered DCE, Digital Surge 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 Digital Surge. 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

How to sync transaction history from Digital Surge by API

You can setup a data feed directly into Syla to do your Digital Surge tax report by API:

  1. Login to Digital Surge
  2. In the top navbar, click the menu icon > select API Key
  3. Click Create a new API key
  4. Select Read only
  5. Click Next
  6. Enter your 2fa code if prompted
  7. Copy the API key and paste into Syla
  8. In Syla, click Secure Sync
Digital Surge API Instructions 1
Digital Surge API Instructions 2
Digital Surge API Instructions 3
Digital Surge API Instructions 4
Digital Surge API Instructions 5

What transaction statements do you need from Digital Surge

How to get tax statement from Digital Surge - CSV

There is one important Digital Surge tax CSV file that you need to download to get your transaction history from Digital Surge:

  • Transaction History CSV

Follow these instructions to download your transaction history from Digital Surge:

  1. login to Digital Surge
  2. hover over the menu dropdown > click Transaction history
  3. click Export history > Transaction history
  4. enter a From date that is earlier than your first transaction
  5. enter the current date for the To date
  6. select CSV as the format
  7. click Export history
Digital Surge CSV Instructions 1
Digital Surge CSV Instructions 2
Digital Surge CSV Instructions 3
Digital Surge CSV Instructions 4

How to get tax report from Digital Surge - PDF

There is also one important PDF tax statement from Digital Surge:

  • Account Statement PDF

Follow these instructions to download your Digital Surge PDF statement

  1. login to Digital Surge
  2. hover over the menu dropdown > click Transaction history
  3. click Account statement
  4. select the financial year
  5. click Confirm
Digital Surge PDF Instructions 1

How to do Digital Surge 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

  1. do it yourself by hand in a spreadsheet 😭
  2. provide your transaction statements to your tax agent / accountant
  3. 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 Digital Surge 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 Digital Surge taxes and minimising your tax bill

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

  • Export your entire transaction history - Capital gains tax calculations depend on trades that occurred in prior years. For this reason, it’s really important that you export your entire transaction history on Digital Surge (not just the current financial year).

Syla’s smart tax logic for Digital Surge

You’ll find some really smart logic in Syla that is going to make doing your crypto taxes on Digital Surge 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 Digital Surge that you’ll find in Syla’s crypto tax calculator:

  • classification of limit orders and broker orders
  • capitalisation of brokerage fees
  • detection of correction events
  • classification of affiliate bonuses
  • claim deposit fees on AUD deposits
  • claim withdrawal fees
  • support for internal transfers between users
  • classification of earn rewards

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 Digital Surge have tax statements?

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

How do I get Digital Surge 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 Digital Surge have an end of year tax statement?

Yes, Digital Surge has an Account Statement 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 Digital Surge?

Yes, Digital Surge 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.

Is it safe to share my Digital Surge API Keys?

Yes, it's perfectly safe to share your Read-Only API Keys, as Read-Only does not provide access to place trades or withdraw crypto. As an additional security measure, Syla will automatically reject API keys that you accidentally provide that have permission to trade or withdraw crypto.

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Disclaimer

The information in this article reflects our understanding of existing legislation, proposed legislation, rulings and other tax law, as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.

The information provided in this article is purely factual in nature and does not constitute tax advice, financial product advice or legal advice. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. If you require professional advice that takes into account your particular circumstances, you should consult an appropriate professional.