Koinly, a leading cryptocurrency taxation service, has announced that it would be expanding its service offering to Ireland. In a press release published earlier this week, the platform, which automates capital gains tax reporting for crypto accounts, announced its launch in Ireland. Crypto investors can now link their crypto wallet and exchange accounts to the platform, thus getting a detailed tax report in a matter of minutes.
Streamlining tax reporting techniques
Founded back in 2018, Koinly has been proven useful for individuals and businesses that are interested in better crypto tax reporting. In the past year, the company claimed it generated and tracked tax reports for funds worth over $250 million.
In the release, the company detailed that they had recognized a significant difficulty in reporting taxes on crypto assets, as both the challenges of regulatory obscurity and account consolidation have made it increase the difficulty of getting the task done.
Robin Singh, the founder of the tax reporting platform, explained,
Working with Koinly is rather straightforward. Users need to provide read access to their transaction data to set the ball rolling. Thus, the platform can ensure the protection of all sensitive data, including wallet passwords and private keys.
A wide adoption opportunity
According to the release, the platform provides integration for 33 cryptocurrency exchanges, as well as over 6,000 crypto assets themselves. However, Koinly is much more than just tax reporting and filing. It also provides tax planning tools, which improve the ease of examining and reducing taxation liabilities. It handles all income from several platforms, including Staking, Masternodes, and DeFi, with the ability to get historical market data on crypto-assets panning over a decade.
Differences in tax classifications
However, while the Irish crypto tax landscape is getting a bit of an entrant, certain other countries within the European Union seem to be imposing some rather lax taxation policies. Last month, the Portuguese Taxation Authority announced that it would not be imposing any Value Added Tax (VAT) on cryptocurrency trading and payment activities.
According to the announcement, crypto payments which are subject to the provision of services under Article 9 (27) (d) of the Portuguese tax laws won’t have VAT imposed on them. However, it only applies to individual use, as businesses will still need to pay several taxes, including social security, VAT, and income taxes.
The announcement followed a separate Portuguese tax benefit for crypto traders; Ruling 5717/2015, which declares that there won’t be any taxes imposed on the proceeds that come from the sale of cryptocurrencies to individuals.
Essentially, the ruling, which was delivered in 2018, claimed that cryptocurrency sales don’t qualify as capital gains if the tokens are gotten from the sale of financial products as defined in Portuguese law, which is usually subject to a 28 percent tax rate.