Phemex is one of the largest cryptocurrency platforms used globally. Find all you need to know about Phemex tax calculation and reporting; find answers to questions that aren’t answered anywhere else.
In several countries, tax authorities are interested in how you trade with cryptocurrencies, including Phemex. This includes your capital gains and losses, expenses, and any income generated from your crypto investments. However, to get this done you will need information about your transaction history on Phemex.
Since Phemex doesn’t report taxes directly, it is usually recommended that you use crypto tax software. Don’t worry, we’ll walk you through it!
You can download or export your transaction history into your Phemex account in one of two ways:
No, Phemex doesn’t provide a tax report. However, it provides financial statements which can be useful in calculating and reporting taxes.
This is a seamless process if you use the Phemex tax report API which automatically collects your transaction history and sends it to the crypto tax software of your choice.
Alternatively, you can do your crypto taxes manually by downloading the CSV files of your Phemex transaction history. You can then use this to manually calculate your crypto taxes or you can import your CSV files into crypto tax software like Koinly to generate your Phemex tax report.
If you are resident in the United States and have made over $600 in trades through cryptocurrencies, it is expected that you will receive a 1099-MISC form. Of course, this doesn’t apply to users residing outside the United States.
Phemex is not regulated in the US as they offer crypto derivatives - so it’s very unlikely you’ll be getting a 1099 form from the IRS.
Yes, Phemex does provide account statements - which you will need to calculate your crypto taxes. It is important to note that Phemex will not give you a financial statement in one CSV document, rather you’ll have to download multiple CSV files to create a financial statement. After you have downloaded the files, you can import your Phemex files into a trustworthy tax calculator like Koinly to calculate your tax.
The files you'll need are:
If you are using Koinly, you'll only need the withdrawal, spot wallet funds, contract trade fund, investment, and spot trading statement files.
Let’s take a look at how to get your Phemex CSV files.
Yes, financial statements generated by Phemex are downloadable in CSV format. These files can either be used to calculate taxes manually or imported into crypto tax software for calculation and reporting. Here’s how to get each statement (or see more detailed instructions for Phemex CSV files for Koinly).
Please note for all Phemex CSV files, you may have to wait up to 24 hours for the CSV file to generate. You’ll see a status next to your report that will change from “generating” to “generated” once your report is ready to download.
Yes, Phemex provides a tax report API that can be used to export transaction details.
You can connect Phemex with a tax report system such as Koinly - see instructions here.
You can create API keys from the API management page in Phemex - but make sure to create read-only API keys for your crypto tax software.
It is important to note that accessing the API secret code once the pop-up is closed is impossible. It is only available once.
No, Phemex doesn’t provide an EOFY statement for users. However, you can adjust the time range to cover the span of your country’s financial year when you’re exporting CSV files. For example, you could use January 1st 2022 to December 31st 2022.
If you’re uploading CSV files to crypto tax software, make sure to download CSV files that cover your entire trading history on Phemex so you can calculate your cost basis, short-term and long-term capital gains correctly.
Phemex is not licensed to operate in the US, so it’s unlikely they report to the IRS. However, that could all change quickly if the IRS or the SEC take an interest. It is advisable that all your taxable transactions are reported correctly.
It is likely Phemex has been pressured to share KYC data with other tax authorities. Just like other large crypto exchanges, it is likely Phemex reports to tax authorities such as the CRA, ATO, and a host of other relevant authorities.
There are generally two ways you can generate tax forms for Phemex. It can be done manually or via a crypto tax app or software. Taking the manual route entails taking note of all taxable transactions such as capital gain or loss by selling, trading, spending, or gifting crypto and every other form of income you’ve earned through cryptocurrencies like mining, staking, etc. Collecting all necessary information in these aspects, calculating your net capital profit and losses and adding it to your annual tax returns.
However, if you have many transactions on Phemex, this could be taxing, which is why it is advisable that you use crypto tax software.
With crypto tax software, all the arduous tasks are done for you. You simply use the Phemex API or export your Phemex transaction history then import it into the tax software. It will generate a Phemex tax form for you based on where you live and your tax office.
At this point, you probably know how tedious it is gathering information about your Phemex transactions, putting the sums together, and ensuring that nothing is left behind. However, with the Koinly tax calculator, you will not only save yourself the hassle that comes with collecting individual taxable transactions, but you will also minimize the chances of omissions.
Koinly will import your Phemex transaction history and also calculate your taxes! Time is important to you, Koinly saves you time, presents your tax information to your tax office in easy to understand format, and also ensures that you do not pay excessive taxes. Here’s a concise detail of what you stand to benefit from using the Koinly tax calculator.