Hi there 👋
Correctly labelling your withdrawal transactions allows you to justify your cryptocurrencies operations in the eyes of the tax authorities and to ensure that they are properly add in the calculation of capital gains.
The choice of label impacts the calculation of your capital gains or losses. Labelled transactions that are not taxable will not be taken into account in the calculation of your capital gains. Don't use labels if you aren't sure of their different impacts.
❗️ These tax labels are only applicable if you use the calculation method that excludes crypto/crypto transactions from the tax.
If you use the crypto/crypto method (default method) see this article.
Here is a table explaining the withdrawal labels available to Belgian users and their tax consequences:
Withdrawal labels
Withdrawal label | Does the label make the transaction taxable? | Does the labelled transaction impact the value of the wallet? |
Payment CFD loss (only if with fiat) Fees Other withdrawal |
Yes 💰 miscellaneous income |
Yes ✅ Reduces ↘️ |
Add staking Add collateral Transfer between accounts |
No ❌ |
No ❌ |
Hack or loss Other loss Donation Add liquidity Liquidation ICO NFT Swap |
No ❌ |
Yes ✅ Reduces ↘️ |
💡 Here are two examples to understand :
1️⃣ – You make a purchase in cryptocurrency (goods, services…).
On the withdrawal transaction, you apply the label “Payment”. This withdrawal will decrease the amount of your cryptos in stock and will be a taxable transaction (miscellaneous income at 33%).
2️⃣ – You deposit ETH in staking on a platform.
On the withdrawal transaction, you apply the label “Add staking”. This withdrawal will not decrease the amount of your cryptos in stock and the transaction will not be taxable.
If you use the “Transfer between accounts” label, you must add it to the withdrawal and deposit.
Example: You send 1 ETH from your Binance account to your Coinbase account.
You therefore have a withdrawal of 1 ETH from Binance and a deposit of 1 ETH on Coinbase: these two transactions must be labelled as “transfer between accounts”.
If you have any further questions, please feel free to contact us via the Chatbot just at the bottom right of your screen! 💬
The Waltio team