The clock is ticking and suddenly the tax filing deadline is just around the corner. To ensure you’re not caught off guard this year, we’ve compiled the submission deadlines for the most important countries in this blog post.
Digital assets and cryptocurrencies have become an important part of the global financial system. In recent years, a clear trend has been noticeable so that more and more people are investing in digital assets such as Bitcoin, Ethereum, NFTs & Co. With the increasing popularity of cryptocurrencies, the associated tax rules have become more complex. The taxation of cryptocurrency gains varies from country to country. So do the associated deadlines.
This blog post helps crypto investors get an overview of country-specific tax deadlines. We will explain which deadlines apply for the submission of tax returns, the payment of taxes, and the disclosure of crypto transactions. This article is a valuable resource for anyone who has invested in digital assets or plans to do so in the future.
Crypto tax deadlines should therefore be taken seriously and with the right tips and tools such as crypto tax software or professional help from a tax expert, crypto investors can stay on top of them and file their tax returns on time.
Click here to jump ahead to the country-specific tax deadlines or read on to learn more about the taxation of crypto assets.
Do cryptocurrency gains need to be taxed?
Short answer: yes
Depending on the country you live in, there are different tax rates and deadlines. There is also a difference between investing as an individual or as a business. In this article, we focus specifically on individual investors. First, we would like to inform you about income tax, capital gains tax and taxes on income from mining or staking crypto.
Income tax is a form of tax that governments levy on income earned by individuals, businesses, or other entities within their jurisdiction. In most countries, income tax is a progressive tax, meaning that the tax rate increases as the amount of income earned increases.
This is designed to ensure that those who earn more pay a higher proportion of their income in tax than those who earn less.
Capital Gains Tax
Capital gains tax is levied on the profits earned from the sale of an asset, such as cryptocurrencies, stocks, or real estate. It is based on the difference between the sale price of the asset and its original purchase price, and it is paid by the seller of the asset.
For example, if an individual buys Bitcoin for $1,000 and sells it later for $1,500, they have a capital gain of $500. The capital gains tax is then applied to that $500 profit, based on the tax rate set by the country’s government.
Capital gains tax is often used by governments as a way to generate revenue and to encourage long-term investment in assets. It is also seen as a way to promote fairness in the tax system, as it ensures that individuals who earn income from the sale of assets are subject to taxation in a similar way as those who earn income from employment or other sources.
Does the Exchange already collect the Crypto Tax?
Many crypto investors believe that the exchanges on which they bought or sold digital assets already collect the relevant tax.
However, until the end of 2023, this is not the case.
Traditional stockbrokers are often “tax-efficient,” meaning that the broker already deducts your capital gains tax when you sell an investment product like stocks.
Crypto exchanges, on the other hand, do not deduct any taxes from your gains. This means that crypto investors need to keep track of their transactions and trades by themself and report all gains, losses and income on their yearly tax declarations.
Crypto Tax Deadlines 2023
Cryptocurrency taxes are handled differently depending on the country, so it is essential to inform yourself about local tax regulations.
Tip: In most countries, those who file their tax returns online have a little more time than those who file their taxes on paper. If you hire a tax advisor, the filing deadline is pushed back even further. See the country-specific details below.
Germany Tax Deadline
- Earliest submission: 01.01.2023
- Online tax return: 31.07.2023
- Paper tax return: 30.09.2023
- Tax return through tax advisor: 31.07.2024
Read the guide: Crypto taxes in Germany
Austria Tax Deadline
- Earliest submission: 01.01.2023
- Online tax return: 30.06. 2023
- Paper tax return: 30.05.2023
The taxpayer can extend both deadlines on reasonable request. Longer deadlines are possible, for example for representation by a tax advisor or a company trustee.
Read the guide: Crypto taxes in Austria
Switzerland Tax Deadline
Crypto tax deadlines in Switzerland vary by canton. Therefore, it is recommended to inquire about the exact deadlines with the responsible tax authorities.
- Earliest submission: 01.01.2023
- Online tax return: 31.03.2023 to 30.06.2023
- Paper tax return: 30.06.2023
France Tax Deadline
- Earliest possible submission: 06.04.2023
- Online Deadline for oversea residents of french residents who live in departments 1-19: 23.05.2023
- Online Deadline for french residents who live in departments 20-54: 30.05.2023
- Online Deadline for french residents who live in departments 50-101: 07.06.2023
- Postal-Tax-Deadline: 18.05.2023
Read the guide: Crypto taxes in France
Spain Tax Deadline
- Earliest possible submission: 07.04.2023
- Online-Tax-Deadline: 30.06.2023
Read the guide: Crypto taxes in Spain
Netherlands Tax Deadline
- Online-Tax-Deadline: 01.05.2023
- Online Tax Submission starts on 01.03.2023. and ends with 01.05.2023
Read the guide: Crypto taxes in the Netherlands
Belgium Tax Deadline
- Online-Tax-Deadline: 30.06.2023 or 15.07.2023
- Postal-Tax-Deadline: 30.06.2023
Read the guide: Crypto taxes in Belgium
United Kingdom Tax Deadline
- Tax year from 06.04. to 05.04.
- Online-Tax-Deadline: 31.01.2023
- Postal-Tax-Deadline: 31.10.2023
Read the guide: Crypto taxes in the UK
United States of America USA Tax Deadline
- Regular Online-Tax-Deadline: 15.04.2023
- Deadline for US expats – citizens and residents living outside of the US: 15.06.2023
- When filed for a tax extension, final deadline to submit your tax return: 15.10.2023
Read the guide: Crypto taxes in the USA
Australia Tax Deadline
- Tax Year: 01.07. to 30.06.
- Online-Tax-Deadline: 31.10.2023
Canada Tax Deadline
- Tax Year: 01.01. to 31.12.
- Tax Deadline starts: 01.03. – 01.05.
- Online-Tax-Deadline: 01.05.2023 → normally it’s on 30.04., but since it falls on a weekend, the deadline moves to the next weekday
Why it’s important to meet cryptocurrency tax deadlines
The consequences of missing your tax deadline vary from country to country. However, most of them include late filing fees, forced fines, and, in severe cases, even jail time.
On the other hand, meeting tax deadlines comes with real benefits.
Starting with the obvious: you don’t have to pay any late fees or fines.
Additionally, filing your taxes early can dramatically shorten the amount of time it takes to process your tax return as most people wait until right before the deadline to file. Early processing = early refund!
Generating your tax report can also influence your trading strategy for the new tax year. Taxpayers in some countries are eligible to utilize losses from crypto trading to offset future gains from crypto trading. It’s in your best interest to calculate your gains and losses early on and adapt your trading strategy accordingly.
Lastly, it’s just great to get it out of the way. Doing your taxes is a stressful activity for a lot of people. Gathering all the information, trying to understand what you did ten months ago, figuring out what all the forms are meant to be used for – it can be a lot!
Tips for meeting crypto tax deadlines
Keeping good records of all your crypto transactions can save you a considerable amount of time when filing your taxes.
Important transactions include purchase and sale dates, exchange data, mining and staking earnings, as well as trade gifts. Organize your transactions chronologically and thematically to ensure easy tracking.
Using crypto tax software
Use tax software for easy documentation and tax calculation. Crypto tax software utomatically captures crypto transactions and calculates your tax burden according to your local tax regulations.
- Automated tax calculation
Automatically calculate tax obligations for all your crypto transactions and generate country-specific tax reports.
- Portfolio overview
Get a clear overview of your cryptocurrency portfolio and identify trends or issues.
- Real-time tracking
Tracking all of your transactions, fees, and prices in real-time.
- Legal security
Meet regulatory requirements for your crypto tax return with fully-compliant tax reports and detailed transaction overviews.
- Wallet & exchange integrations
Easily connect crypto wallets and exchanges to automatically import and synchronize your crypto transaction data.
Discover the top crypto tax solutions in our software comparison: Best Crypto Tax Software
Optional: Hiring a tax professional
Seek professional help from a tax expert for any uncertainties or questions about tax laws and deadlines.
Accountants love us, too! Share your Blockpit tax report with your tax professional to save them time and work.
Make sure to allow enough time for preparing your tax return and to apply for an extension of the deadline in a timely manner, if necessary.
Can you file your own crypto taxes?
Yes, in most countries taxpayers can file their crypto tax return themselves. However, depending on the complexity of your transactions and the tax laws in your country, it may be advisable to seek professional help from a tax expert.
If you decide to file your crypto tax return yourself, you should make sure you have all the necessary information and documentation. This includes a history of all crypto transactions, including purchase and sale dates, exchange data, mining and staking earnings, as well as airdrops.
In addition, you should familiarize yourself with the tax laws and deadlines for cryptocurrencies in your country. It is also important to perform tax calculations accurately to ensure that you do not make mistakes and avoid unwanted sanctions or penalties. If you have any doubts or questions about tax laws and deadlines, you should seek professional help from a tax expert. You can find a list of professional crypto tax experts here.
It’s crucial to stay on top of tax deadlines, not only to avoid fees and penalties but also to get a clear picture of the past tax year and to better prepare for the months to come.
Keeping accurate records of your crypto transactions, familiarizing yourself with the regulations of your country and understanding the forms you need to fill out can make filing your crypto taxes feel like a walk in the park. Even more so if you can use a crypto tax tool like Blockpit!