How to do your Internet Computer (ICP) taxes with Koinly
Internet Computer (ICP) is a scalable, decentralized blockchain that enables web applications to run entirely on-chain using canisters and is powered by the ICP token. But if you have ICP transactions, you may have a tax bill. Koinly can help; you just need to import your transaction history. Here's how.
Follow these steps to sync your Internet Computer (ICP) data automatically to Koinly:
- Open your Internet Computer (ICP) wallet app
- Locate and copy your public address or key
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Internet Computer (ICP) in the list
- Select API > Paste the public address/key 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
FAQs
What is ICP?
Internet Computer (ICP) is a decentralized blockchain platform by DFINITY that enables developers to build and run backend and web applications directly on-chain, eliminating reliance on centralized cloud providers. It uses canisters, a type of smart contract, to handle computation and serve content, and its Chain Key Technology enables efficient, scalable, and secure state updates. The ICP token is used for network governance, paying for computation, and staking.
Is ICP safe?
Internet Computer (ICP) is designed with several security features, including its unique Chain Key Technology, which enables quick and secure state updates while maintaining decentralization. The platform relies on a network of independent data centers (called nodes) that are controlled by a decentralized governance system called the Network Nervous System (NNS), which helps ensure transparency and integrity. However, the overall safety of ICP depends not only on its technical safeguards but also on the quality of smart contract code (canisters) deployed by developers and the diligence of the community in maintaining node integrity and resisting attacks. Like any blockchain, vulnerabilities in the ecosystem or poorly written canisters could expose users to risks.
Does ICP provide tax documents?
No, but you can use a crypto tax tool like Koinly to calculate your tax obligations from Internet Computer (ICP) transactions and generate detailed tax reports. Simply add your ICP wallet address, and Koinly will automatically import your transaction history to calculate your gains, losses, income, and more.
