You can easily get your Get Paid in Bitcoin taxes done in Syla, ensuring you pay the lowest crypto tax legally possible.
What is Get Paid in Bitcoin
Get Paid in Bitcoin (GPIB) is an innovative Australian service that allows employees to receive a portion of their salary in Bitcoin. It promotes the integration of cryptocurrencies into daily financial management, making it easier for individuals to accumulate Bitcoin over time.
Unique features for investors include:
Seamless integration with existing payroll systems, allowing employees to receive part of their salary in Bitcoin.
Dollar-cost averaging through regular payments in Bitcoin.
Direct payment in Bitcoin eliminates the need for buying cryptocurrencies via exchanges.
How is crypto taxed on Get Paid in Bitcoin
Ever since the first ATO crypto tax guidelines were introduced back in 2014, it’s been clear that crypto is taxable. As an Australian taxpayer, you are legally required to declare your local and worldwide income, including your crypto gains and losses on Get Paid in Bitcoin.
There are two types of assessable income that your crypto investments are taxed on in Australia:
Capital Gains Tax - You’ll end up with capital gains whenever you purchase a crypto asset, and later sell it for a higher price. Capital gains and losses can result from trades, swaps, gifts and many other transaction types.
Ordinary Income - You can easily end up earning income from a number of sources such as commissions, earn programs, staking and many more. These sources of income also need to be declared on your income tax return.
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.
Does Get Paid in Bitcoin report transactions to the ATO
Get Paid in Bitcoin is an AUSTRAC registered Digital Currency Exchange (DCE). As an AUSTRAC registered DCE, Get Paid in Bitcoin 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 when requested.
In short, the ATO knows your transaction history on Get Paid in Bitcoin. You’ll know the ATO has your cryptocurrency transaction data, as it will show in the prefill report on your tax return.
The ATO is only getting smarter at analysing crypto transactions. Even if your crypto transactions don’t show up on your prefill it’s still important that you do calculate and declare your crypto gains, otherwise it’s only a matter of time before the ATO comes knocking.
How to do your Get Paid in Bitcoin 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 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 Get Paid in Bitcoin tax report and crypto tax optimisation:
On the Dashboard page, scroll down to the Transactions section.
Select the year in the dropdown.
Click Download CSV.
Repeat for all years that you have activity on Get Paid in Bitcoin.
Once you have your files, upload them to your Get Paid in Bitcoin data source in Syla, and click Secure Import.
Syla’s smart tax logic for Get Paid in Bitcoin
You’ll find some really smart logic in Syla that is going to make doing your crypto taxes on Get Paid in Bitcoin quick and easy.
Smart logic means your 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 you’ll also avoid paying more tax than you’re legally required to.
Here’s just some of the smart logic that has been specifically implemented for Get Paid in Bitcoin that you’ll find in Syla’s crypto tax calculator:
Implied AUD deposits
Implied bitcoin transfers
AUD to bitcoin purchases
Pay the lowest crypto tax and save the hassle of doing crypto tax yourself
It's very difficult to correctly calculate all the tax outcomes of 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 where 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 ATO compliant, but it also optimises your tax to ensure you pay the lowest crypto tax legally possible, saving you both time and money.
Best value - $59 AUD for 10,000 transactions.
Absolute certainty - purpose-built for Australian tax law.
Maximise your tax savings - using Syla’s proprietary LTFO method.
With taxes in Australia capping out at an excruciating 47%, the question on the mind of many crypto investors is, how do I avoid paying crypto tax? While it’s rare to be able to fully reduce your tax to zero, there are some well know strategies within the tax industry that you can use, and a number of situations where you can legally avoid crypto tax entirely.