What is automatic tax deduction at Bitpanda?
Since January 1, 2024, Bitpanda has been automatically deducting cryptocurrency taxes (withholdings) on behalf of its users. This automated process calculates, withholds, and transfers the owed taxes directly to the Austrian tax office.
Important: This procedure only applies to users who are residents or ordinarily reside in Austria.
Where can I find information about the withholdings?
You can find this information in the Tax Report under Section 3.3, where there's a category that shows which amounts have already been taxed.
What do you need to keep in mind for the 2024 tax year?
Step 1: Back up your Bitpanda transactions
Create a backup of all transactions you made on Bitpanda in 2024. You can do this within your CoinTracking account.
Step 2: Delete old Bitpanda transactions in CoinTracking
Remove all Bitpanda transactions from 2024 that are stored in CoinTracking. To do this, simply select "Bitpanda" and delete all relevant entries.
Step 3: Re-import via the API importer
Next, re-import all Bitpanda transactions into CoinTracking using the API importer.
Step 4: Verify the withholdings
Compare your Bitpanda transactions with those in CoinTracking. Pay close attention to ensure the "Comments" column is not edited, as it may contain important information related to the withholdings.
Step 5: Generate a new tax report
Create a new tax report and check whether all values have been correctly carried over.
Summary:
Since 2024, Bitpanda automatically deducts taxes on cryptocurrency transactions for Austrian users. To accurately reflect this in CoinTracking, you need to delete old transactions, re-import the new ones, and verify the withholdings. The tax report helps you keep track of the amounts that have already been taxed.