Income from derivatives

Waltio labeling and tax declaration

Updated over a week ago

Hi there ๐Ÿ‘‹
๐Ÿ’ก The tax regime of cryptocurrencies seems not to apply to derivatives as they are not defined by the law. There is a legal blur. Interpretations among tax lawyers differ. Here is the one put into practice by Waltio.

Gains from crypto derivatives, a taxable income?

Income generated via crypto derivatives (financial products whose value depends on the price of an underlying crypto-asset), also called futures, should not be a taxable event because the taxpayer does not benefit immediately.

Therefore, each transaction involving derivatives should be tracked and added to your overall digital asset portfolio at an acquisition price of 0.

Concretely, how does it work in Waltio?

After running an analysis (step 3), the taxable income in Waltio will appear as Warnings and you will have to click on Correct.

Filter on transactions with warnings and your deposit, then assign the label โ€œCFD Lossโ€ (or โ€œCFD Gainโ€ for deposits) to the transaction(s).

The labeling allows to correctly take into account the transactions from derivatives and to have an appropriate tax registration (even though they are not taxable).

If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! ๐Ÿ’ฌ

The Waltio team

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