Arbitrum’s benefits, such as high scalability, a strong security guarantee, and increased privacy, make it an attractive platform for investors to build decentralised applications and handle high transaction volumes at lower costs.
If you’re an investor engaging in Arbitrum Chain transactional activities, it’s important to be aware of potential tax liabilities.
KoinX streamlines managing crypto taxes, portfolios, and accounting for investors through automated systems. It simplifies the generation of Arbitrum tax reports, making it easier for everyone to stay on top of their tax game in the crypto space.
This post shows an in-depth explanation of how to generate your Arbitrum tax report from KoinX.
A step-by-step guide on how to Integrate your Arbitrum chain with KoinX
KoinX allows you to calculate your crypto taxes with ease. Here’s how you integrate it with the Arbitrum chain:
Step 1: The first step would be signing in to your KoinX account with your credentials.
Step 2: Locate the “Integrations section” at the top and select the “Blockchains” category.
Step 3: Select the Arbitrum option from the list of blockchains available.
Step 4: You can add a custom name of your choice. This name will help you identify your wallet later on.
Step 5: Finally, enter your public address. This is nothing but the receiving address or account address that you see on your wallet, like “Metamask” or “Trust”.
Step 6: Once you’ve entered your public address, double-check that it’s correct, and then hit the “Submit” button to complete the integration process.
All your transactions on the Arbitrum chain are now added to KoinX. We import all your transactions across all years, including ERC-20 transactions.
Watch how to generate your Arbitrum tax report with KoinX
Take the first step towards stress-free crypto tax reporting. Watch our tutorial on generating your Arbitrum tax report with KoinX and start saving your precious time and money today!
Important Things to Consider While Generating Your Arbitrum Tax Report with KoinX
- Please make sure that all of your integrations have been connected.
- KoinX automatically synchronises transactions from your wallet address at regular intervals. However, if you need to synchronise it at any other time, please utilise the ‘Sync Now’ feature available on KoinX.
How To Easily Calculate & File Your Arbitrum Taxes using KoinX
Step 1: Add all the chains and exchanges where you have an account
KoinX supports a wide range of major crypto exchanges and wallets, which enables anyone to conveniently import all their transaction data, in one place.
Step 2: Review your transactions.
KoinX will automatically categorise all transactions and compute gains and losses accordingly, ensuring 100 percent accuracy and compliance with the latest tax regulations.
Note: If you see warnings in your portfolio, refer to this article to fix the issues.
Step 3: Generate your tax reports for the selected Financial Year
KoinX produces all the essential tax reports while providing a clear breakdown of one’s crypto tax obligations.
You have the option to categorise your trades as Capital Gains or as Business Income.
If you are trading in crypto as a secondary source of income (like just passively investing for returns) then please select Capital Gains.
If you are trading with the intent of making crypto as your primary source of income, then please select Business Income.
Step 4: File your taxes
Export tax reports directly from KoinX and import them into your preferred tax software, or provide them to your tax professional for swift and hassle-free filing.
Frequently Asked Questions
Do I need to report my Arbitrum for tax purposes?
If you are based in India and have invested in Arbitrum, it’s important to note that the 2022 Budget by the Indian government mandates that all cryptocurrency transactions are taxable. This means that profits from Arbitrum are subject to a 30% tax. As such, it’s necessary to report your Arbitrum investments for tax purposes to avoid penalties or legal issues in the future.
Does Arbitrum provide tax reports?
Arbitrum currently does not have a built-in tax reporting feature. However, investors can easily generate accurate tax reports for their Arbitrum transactions by integrating their accounts with KoinX, a comprehensive cryptocurrency tax management solution.
How are Arbitrum transactions taxed in India?
Arbitrum transactions, including trading, selling, or spending crypto, are subject to a 30% tax on profits, as per the 2022 Indian budget. Investors selling crypto assets for more than INR 50,000 or INR 10,000 in a financial year may also face a 1% TDS.
How does Arbitrum tax reporting with KoinX work?
With KoinX, you can easily generate tax reports for your Arbitrum investments. Once integrated, KoinX will automatically sync all your transactions and produce downloadable tax reports that can be used for filing your taxes or being shared with your tax professional.
What are the most common issues with importing transactions from the Arbitrum to KoinX?
Even though the KoinX and Arbitrum Chain integration is seamless, there are instances where you sometimes upload the wrong address or the address might be missing characters. Try double-checking the file before uploading.
How do I troubleshoot my integration with KoinX?
For any troubles related to integration, you can carefully navigate through the steps once again mentioned in our guide. Alternatively, you can also reach out to us on Twitter or write to us at support@koinx.com.
