How to do your BTC Markets taxes
BTC Markets is an Australian crypto exchange that's particularly popular with large-scale investors thanks to its fee tier and API trading capabilities. If you're using BTC Markets to invest in Bitcoin and other cryptocurrencies, the ATO will want its cut. If you need to learn how to calculate and report your BTC Markets taxes with the ATO, you're in the right place. Here's how:
Follow these steps to sync your BTC Markets data automatically to Koinly:
- Log in to BTC Markets.
- Select account.
- Select API key.
- Create a read-only API key.
- Copy your API key and secret and add them to Koinly.
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find BTC Markets 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 BTC Markets transactions taxed?
The tax you’ll pay on your BTC Markets transactions all depends on how long you’ve held your asset, how much you earn, and the specific transactions you’ve made, as well as where you live. You can learn all about it in our  Australia crypto tax guide, but in brief, you’ll pay Capital Gains Tax or Income Tax, depending on your specific transactions:
Capital Gains Tax: If you sold or swapped crypto on BTC Markets, 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:Â Meanwhile, if you earned new tokens from your investment activities on BTC Markets, the ATO generally views this as additional income, and you may need to pay Income Tax upon receipt.
Outside Australia? Check out our other crypto tax guides to learn more!
Does BTC Markets report to the ATO?
Yes, BTC Markets may report to the ATO. As an AUSTRAC-registered exchange, BTC Markets may be required to share customer data with the relevant government authorities, including the ATO. Learn more in our guide: can the ATO track crypto?
How do I lodge my BTC Markets taxes?
If you’ve traded on BTC Markets, you’re required to declare any capital gains, losses, or income to the ATO when lodging your annual tax return. You can do this via the myTax online system or by using paper forms NAT 2541 and NAT 2670.
Planning to go the DIY route? Be prepared to dig into your transaction history to figure out your cost base for each asset, identify which events are taxable and what rules apply, calculate your profits and losses using ATO-approved methods, and distinguish between short-term and long-term gains. And remember, this applies to all your wallets and exchanges, not just BTC Markets.
That’s why many crypto investors turn to crypto tax calculators like Koinly, which can calculate your taxable transactions and generate crypto tax reports to help you file with the ATO or hand over to your accountant.
FAQs
Does BTC Markets have tax documents?
No, BTC Markets don’t provide a tax report, but you can get one using crypto tax software.
How do I get BTC Markets tax documents?
BTC Markets offers 2 easy ways to export your transaction history:
1. If you're using crypto tax software - the BTC Markets tax API is quicker and automatically fetches your transaction history. To connect, just log in to BTC Markets and select account then API key. Create a read-only API and copy your API key and secret, then paste these details into your crypto tax tool when you're adding a new wallet.
2. Prefer to use a CSV file? No problem. Log in to BTC Markets and select buy/sell, then trade history to export to CSV. Use your CSV file to calculate your crypto taxes yourself or upload it to a crypto tax calculator.
Does BTC Markets provide financial or end of year statements?
No, BTC Markets doesn't issue users with a financial or EOFY statement. Instead, you’ll need to get your BTC Markets transaction history, via CSV or API.
Do I have to file a Capital Gains Tax Schedule for BTC Markets?
Maybe. It depends on your investments. If you have more than $10,000 in capital gains throughout the financial year from all your investments, you'll need to file a Capital Gains Tax Schedule with the ATO.
Do I have to pay taxes on BTC Markets?
Yes - you’ll pay tax on any capital gains or income from your BTC Markets transactions. And if you’re thinking of avoiding your taxes? Think again - the penalties are steep!
