How to do your Bybit taxes

You can use a Bybit tax calculator like Koinly to easily generate Bybit tax documents. Simply connect Bybit to Koinly automatically via API or upload a CSV file of your Bybit transaction history. Once it has your data, Koinly calculates your Bybit gains, losses, income, and more, before generating your crypto tax reports.

How are Bybit transactions taxed?

Crypto tax depends on where you live and your specific transactions (so read our crypto tax guides for more information), but in general, two taxes may apply to your Bybit transactions:

• Capital Gains Tax: When you dispose of crypto on Bybit and make a gain, Capital Gains Tax may apply. Disposals generally refer to anytime crypto changes hands, like a sale, a trade, or a spend. In some instances, gifting is also a disposal. Capital Gains Tax also generally applies to profits from realized gains from margin trading, futures, options, and derivatives, but it does depend on your country and whether you're day trading as a business.

• Income Tax: When you earn new coins or tokens, Income Tax may apply. This would generally include Bybit Earn products, including Bybit staking, savings, and structured products.

Take a deeper look at how the different transactions on Bybit might be taxed.

How is buying and selling crypto taxed on Bybit?

Buying crypto is generally tax-free, although in some countries like India, a small tax deducted at source (TDS) applies to purchases. Sales of crypto on ByBit for fiat currencies are generally subject to Capital Gains Tax for individual investors.

How is spot trading taxed on Bybit?

Trading crypto for crypto is generally seen as a disposal and therefore it's a taxable event where any gain is usually subject to Capital Gains Tax for individual investors. There are some countries, however, like France and Austria, that don't tax trades of crypto.

How are derivatives taxed on Bybit?

Options and futures tax are a complex area of legislation, even in traditional markets, and the rules very much vary depending on where you live and whether you're an individual investor or a business trader. This said, for individual investors, Capital Gains Tax often applies to any realized profits from options or futures investments.

How is auto-invest taxed on Bybit?

Buying crypto isn't generally taxed. However, you will need to keep good track of your cost basis when you're utilizing a dollar cost averaging strategy, as this will have a big impact on your tax bill later on when you sell.

How are savings taxed on Bybit?

Bybit savings let you stake an asset for a yield in one click. Staking rewards are generally taxed as income upon receipt and are subject to Income Tax.

How is wealth management taxed on Bybit?

Like Bybit Savings, Bybit Wealth Management offers yield products, but with higher reward rates. These will generally be subject to Income Tax on receipt.

How are NFTs taxed on Bybit?

From a tax perspective, NFTs are treated the same as crypto in most countries. This means that when you trade crypto for an NFT or vice versa, this may be a taxable disposal, and any gain is subject to Capital Gains Tax.

How is Bybit Pay taxed?

Spending crypto is generally seen as a disposal, and therefore, if you have a gain, you'll generally pay Capital Gains Tax.

How are airdrops taxed on Bybit?

Legislation on airdrops tax varies depending on where you live. Some countries, like the USA, view it as taxable income on receipt, while others, like Australia, say specific types of airdrops, such as initial allocation airdrops, are non-taxable events.

Does Bybit automatically deduct taxes?

No. Bybit does not deduct taxes for users. It is your responsibility to calculate and pay any tax due to your tax office.

Does Bybit report to tax offices?

Yes. It's likely Bybit is required to report to tax offices globally. You can learn more in our dedicated guides:

• Does Bybit Report to the IRS?

• Does Bybit Report to the ATO?

• Does Bybit Report to HMRC?

• Does Bybit Report to the CRA?

Does Bybit send tax forms?

No. Bybit does not send tax forms to users. However, you can use a crypto tax calculator like Koinly to generate your Bybit tax forms easily.

How do I get my Bybit tax documents?

There are two options:

• Identify your taxable transactions on Bybit, calculate your capital gains and losses, plus determine the fair market value of any additional income in your fiat currency.

• Use a crypto tax calculator like Koinly to do it for you.

Koinly makes Bybit taxes simple. You just import your Bybit transaction data, and Koinly will identify your taxable transactions, calculate your gains and losses, figure out the fair market value of any income from crypto, and generate your tax reports.

Optimize your Bybit taxes

Prudent investors don't wait until the tax deadline; they use a crypto portfolio tracker like Koinly to optimize their tax liability. Koinly offers features such as its tax optimization dashboard that can help you identify unrealized losses and simulate sales to see the impact on your tax bill, as well as tools like an asset maturity dashboard to help you identify which assets are best to sell to benefit from long-term Capital Gains Tax rates or discounts.