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How to file your Binance taxes with Koinly

Binance pairs perfectly with Koinly to make crypto tax easy! đŸ€Sync Binance with Koinly to calculate your crypto taxes fast. ⚡ Connect in minutes! đŸ–±ïž

API Import CSV File Import
Last updated: Friday, 2 December 2022

How to do your Binance taxes with Koinly

One of the largest crypto exchanges in the world  - Binance helps millions of crypto investors buy, sell and trade crypto every day. Koinly can help you do your Binance taxes safely, quickly, and accurately. 

  1. Sign up to Koinly and choose your country and currency
  2. Connect Binance with Koinly to import all your Binance trades safely and securely
  3. Koinly categorizes Binance transactions into gains, losses and income
  4. Koinly calculates your Binance Capital Gains Tax and Binance Income Tax
  5. Download your Binance tax report from Koinly
  6. File your Binance taxes online or with your crypto tax accountant

Watch how to do your Binance taxes fast

How are Binance transactions taxed?

Your Binance taxes will depend on several factors including your country's crypto tax rules, whether you're trading as an individual or as a business, and the type of transactions you've made throughout the year. 

Our country crypto tax guides go into specific detail, but in general you'll pay one of two taxes on your Binance transactions...

Does Binance report to tax offices?

In short - yes. The majority of tax authorities around the world are taking a similar hard stance on crypto tax evasion. They're working with major exchanges operating in their country to share KYC information and ensure taxpayers are paying their fair share. As Binance is the largest crypto exchange worldwide, it is very likely they have been contacted by multiple tax authorities to share customer information.

How do I file my Binance taxes?

To include your Binance crypto investment activity in your annual tax return you'll need to calculate and report any income or capital gains - or losses - you made throughout the year. 

You can do this in one of two ways. You can either do it yourself, by identifying your taxable transactions, calculating your net capital gain or loss, and the fair market value of any crypto income.

Or, you can use a crypto tax calculator like Koinly. Koinly calculates your income and gains or losses for you and automatically generates your Binance tax report, ready to file with your tax office.

Koinly works by importing your Binance transaction data to analyze what's taxable, and what's not. Let's look at an example - here's some transactions in a Binance account.

Binance transaction history example

You can import your Binance transaction history via API integration or by uploading CSV files of your Binance transaction history. Once you've done this, you'll be able to see your Binance transactions in Koinly - like this.

Binance transactions in Koinly

Koinly lets you manage all your crypto transactions - from Binance and any other exchanges you use - from one single platform, making crypto tax simple. Here's how to connect...

If you're using Binance US - your steps will be slightly different. See our full guide on how to do your Binance US taxes.

How to connect Binance to Koinly via API

On Binance

  1. Log in to Binance
  2. Go to the Binance API management page
  3. Select create tax report API - this is read-only by default
  4. Copy the API Key and API Secret

On Koinly

  1. Sign up or login into Koinly and head to the wallets page
  2. Add a new wallet: Binance
  3. Select set up auto sync
  4. Paste your Binance API key and API secret
  5. Select secure import

Important

1. The Binance API will only return the most recent 3 months of futures trades. IF you have traded futures and have transactions that are older than 3 months then you need to add those separately using CSV files.

2. The preferred method for Binance is actually CSV. After all historical data has been imported using CSV files, the API can be connected and set to ‘Start syncing from Now’. This will allow the API to sync any future transactions.

3. Convert trades prior to the 1st of January 2021  are not provided by API.

4.  Dust conversions more than 1 year old  are not provided by the API.

5. Binance API import normally takes around 50 minutes to complete.

6. If you've already used the API method, make sure you delete your existing Binance transactions from Koinly before you upload your CSV file. You can find this option in the troubleshooting Binance page, on the right. It's really important you do this as otherwise you'll end up with duplicated transactions and an inaccurate tax report!

How to integrate Binance with Koinly using CSV

You'll need to start by downloading a CSV file with your full trading history from Binance before you can upload it to Koinly - here's how.

How to download and export your transaction history CSV file from Binance

  1. From your Binance account, select wallet from the top navigation menu
  2. From the drop down menu, select transaction history
  3. Now select generate all statements
  4. Under time, select customized. Enter your date range (maximum 12 months)
  5. Select generate. Your statement might take a moment to generate
  6. Repeat until your full trading history is covered

How to upload your Binance CSV to Koinly

  1. Sign up or login into Koinly and head to the wallets page
  2. Add a new wallet: Binance
  3. Select import from file
  4. Upload your CSV file(s)

Important

1. If you're using the CSV file upload method make sure to import your deposits, withdrawals and trades for ALL trading years and not just the current year. Binance lets you download a maximum of 1 year transaction history at a time, so you may need to export multiple CSV files to cover your complete Binance trading history. We have a great help article for common issues with Binance CSV full of troubleshooting tips.

2. If you're investing in Binance futures, you might be a little confused about your data import. On the transactions page, select label and then Realized P&L from the drop down menu to filter to only your futures transactions. Koinly imports the actual profit and loss from your futures trades and aggregate your P&L transactions, so you'll only have a few transactions a day as opposed to potentially hundreds.

3. Margin trades & P2P are not included in your transaction history CSV file.

How do I troubleshoot my Binance integration to Koinly?

Having issues with your Binance data import? We can help:

Calculate your Binance taxes

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Does Binance have tax documents?

No, Binance doesn't provide a specific Binance tax report - but it is partnered with a variety of excellent crypto tax apps (like Koinly) that can take your Binance transaction report and use it to generate a tax report for Binance.

How do I get Binance tax documents?

There's two ways to generate a Binance tax form - manually or using a crypto tax app. The easiest way is to use the Binance tax reporting API and a crypto tax software like Koinly. Or, alternatively you can export Binance transaction history in a CSV and manually calculate your tax obligations.

Do you get a 1099 from Binance?

Binance.com stopped operating in the US due to regulatory issues with the IRS, subsequently launching Binance.us as a solution. Binance US complies with the IRS to share customer information based on the KYC identification and issues 1099 forms.

Does Binance provide financial or end of year statements?

Technically no, but you can use your Binance account statement which contains your complete transaction history. You can then use this statement to generate a Binance tax statement.

Do I have to pay taxes on Binance?

Yes - if you have capital gains or income as a result of your crypto investment activities on Binance, you'll need to report these to your tax office and pay taxes on them or face steep penalties.

Can you use Binance in the US?

No, US users have been blocked from Binance due to US regulations. However, Binance has launched an American version, Binance.US, that US-based users can use. Some products are not offered to US users though.

Is Binance.US the same as Binance?

No binance.us and binance.com are not the same. Binance.us is specifically for US residents and citizens. In order to comply with US regulations, some of the products of the international Binance exchange are not permitted.

Does Binance have Proof of Reserves?

Yes - Binance has provided Proof of Reserves via a snapshot, with a Merkle Tree released for Bitcoin, with more tokens and networks to be added over the coming weeks. Binance’s snapshot covers blockchains including BTC, ETH, BSC, BNB & TRX. For more information about what Proof of Reserves is and why it matters - check out our blog post on it here.