Tax advisory

The annual settlement of income from transactions in crypto-assets is a key point for every investor. The specific nature of the crypto market — characterized by a large number of transactions, exchange-rate volatility and a lack of standardized reports from exchanges — makes preparing tax returns independently a higher-risk process. After the close of the calendar year, it is crucial to determine reliably the income from the disposal of virtual currencies for consideration and, equally importantly, to document properly the tax-deductible costs that may be carried forward to subsequent years.

Unlike standard securities, the annual settlement of cryptocurrencies is based on an analysis of transaction history from multiple sources: centralized exchanges (CEX), private wallets and DeFi protocols. Our support includes verifying the correctness of asset valuations and identifying tax-neutral transactions. Records of purchase costs are also very important here: we help investors correctly recognize expenditure on acquiring virtual currencies and costs connected with their disposal, ensuring that every item in the return is reflected in reliable statements and transaction confirmations. Many errors in annual settlements arise from the incorrect treatment of specific events, such as receiving cryptocurrencies by way of donation, the settlement of losses from previous years or the taxation of income from so-called ‘mining’.