Cryptocurrency tax calculation platform Koinly has added support for the Terra (LUNA) wallet to make it easier for LUNA users to calculate taxes as Canada’s tax filing deadline approaches.
Tony Dhanjal, head of tax at Koinly, said support for LUNA has been requested by many Koinly users, and with the integration, holders will have a “way to accurately track and record their transactions to meet their tax obligations.” .
Calculating cryptocurrency tax is easy if a user’s cryptocurrency operations are simple. However, Dhanjal told Cointelegraph that “the average cryptocurrency investor is connected to 3-5 exchanges, wallets or blockchain networks.” Because of this, calculating taxes using these sources is very difficult and the risks of errors are high. Therefore, Dhanjal recommends the use of a simple cryptocurrency tax calculation tool.
Furthermore, Dhanjal stresses the importance of paying cryptocurrency taxes. Although the process varies, most countries require that this type of tax be declared. The tax expert encourages people to pay not only their cryptocurrency taxes, but any other taxes that they are responsible for as an individual or business. Dhanjal explained that:
“Ignorance is not a valid excuse, and there could be a fine line between this and tax evasion, which is illegal. […] The penalties for tax evasion can be severe, not to mention the reputational and other damage to you or your business that this could cause.”
In an interview with Cointelegraph, EY cryptocurrency tax executive Thomas Shea recalled that the purchase of cryptocurrency with fiat money or any unrealized gains is not a taxable event. Shea also said that the same applies to non-fungible tokens.
Meanwhile, India-based crypto projects recently shared their plans to move to more crypto-friendly jurisdictions due to the country’s crypto tax law, which imposes a 30% tax on holdings and assets. transfer of digital assets such as cryptocurrencies.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.