How to file your Digital Surge taxes
Following the collapse of FTX Group - Digital Surge announced it was temporarily halting deposits and withdrawals from the platform due to limited exposure to FTX as a portion of digital assets were held with FTX to facilitate trades. Digital Surge is not part of the FTX Group but has been indirectly impacted. The pause of withdrawals and deposits was to stop a bank run while Digital Surge resolves any liquidity issues with FTX. In November 2022, Digital Surge announced it was going into administration and operations would be paused throughout this process.
In January 2023, Digital Surge agreed on a plan with creditors in order to remain operational. As a result, Digital Surge announced trades, deposits, and withdrawals would be enabled again from February 21st, 2023. Balances will reflect a reduced amount versus December 8, 2022, due to administration. For more information see Digital Surge's announcement.
How to do your Digital Surge taxes with Koinly
Digital Surge is a popular and trusted Australian exchange, with a clean and user-friendly interface and great trading options for both new and experienced crypto investors. Whatever your Digital Surge investments, Koinly can help you get your crypto taxes filed with the ATO, here’s how.
Follow these steps to sync your Digital Surge data automatically to Koinly:
- Log in to Digital Surge.
- Select the three line icon in the top right corner.
- From the drop down menu, select API key.
- Select create a new API key.
- Select read only, then next.
- Complete the two factor verification.
- Select generate the API Key.
- Copy the API key and paste it into the field in Koinly.
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Digital Surge in the list
- Select API > Paste the API keys you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
How are Digital Surge transactions taxed?
You’ll pay tax on any capital gains or income from your Digital Surge investments. The amount of tax you’ll pay depends on how long you’ve held your asset and how much you earn. Learn more in our Australia crypto tax guide, but in brief:
Capital Gains Tax: If you sold or swapped crypto on Digital Surge, you’ll pay Capital Gains Tax on any gain. For short-term gains on assets held less than a year, you’ll pay between 0% to 45% in tax depending on how much you earn. For long-term gains on assets held more than a year, you’ll receive a 50% discount.
Income Tax: If you earned new tokens on Digital Surge - for example, Digital Surge Earn rewards - the ATO generally views this as additional income and you may need to pay Income Tax upon receipt.
Does Digital Surge report to the ATO?
Yes, Digital Surge may report to the ATO. Digital Surge is an AUSTRAC registered exchange and may be compelled to share KYC data with the ATO and other authorities to ensure tax compliance.
How do I file my Digital Surge taxes?
You’ll need to report any gains, losses or income from your Digital Surge investments to the ATO and you do this as part of your annual tax return, either using the myTax portal or paper forms NAT 2541 & NAT 2670.
Doing this yourself? Start by identifying the cost basis of each crypto asset, your taxable transactions, and the kind of tax that applies. Then calculate your gains and losses (using an allowable cost basis method), and remember to separate short and long-term gains to make sure you don’t pay too much tax!
Not only do you need to do this for your Digital Surge transactions, but for every crypto exchange or wallet you used to trade throughout the financial year. It’s a lot of work for active investors.
Fortunately, you can use Koinly and save hours. Just connect Digital Surge and Koinly automatically via API or by uploading a CSV file of your transaction history. Koinly will calculate your Digital Surge taxes and generate your myTax report, ready to file with the ATO.
Your frequently asked questions
Does Digital Surge have tax documents?
No, Digital Surge doesn’t provide a tax report that you can file with the ATO straight away. Instead, you’ll need to download your Digital Surge transaction history as a CSV file and calculate your taxes to file instead (or use a crypto tax calculator).
How do I get Digital Surge tax documents?
Digital Surge offers 2 easy ways to export your transaction history to connect with crypto tax software - like Koinly - and generate tax forms. Either connect via API or upload a CSV file of your Digital Surge transaction history.
Does Digital Surge provide financial or end of year statements?
No. Digital Surge doesn’t issue a financial or EOFY statement to users. You’ll need to download your Digital Surge transaction history as a CSV file and use this as your financial statement instead. When exporting a CSV from Digital Surge, you can pick the date range you’d like to cover - for example, the most recent financial year (1 July - 30th June).
Do I have to pay taxes on Digital Surge?
Yes. If you have gains or income from your Digital Surge transactions - you’ll need to pay tax. If you’re thinking of avoiding your taxes? Don’t - the penalties are steep!
Is Digital Surge safe?
Digital Surge is a secure and regulated crypto exchange, but has faced some liquidity issues due to limited, indirect exposure to FTX Group.
Does Digital Surge have KYC?
Yes. Digital Surge is an AUSTRAC and ASIC registered exchange and therefore must have KYC verification in place for users. To trade on the exchange, you'll need phone and identity verification.
