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:

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Follow these steps to sync your BTC Markets data automatically to Koinly:

  1. Log in to BTC Markets.
  2. Select account.
  3. Select API key.
  4. Create a read-only API key.
  5. Copy your API key and secret and add them to Koinly.

On Koinly:

  1. Create a free account on Koinly
  2. Complete onboarding until you get to the Wallets page and find BTC Markets in the list
  3. Select API > Paste the API keys you copied above in the appropriate box
  4. Hit Import and wait for Koinly to sync your data. This can take a few minutes
  5. Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
  6. Go to the Tax Reports page to view your tax liability!
Having trouble connecting BTC Markets with Koinly?

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: 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

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