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Tax on Staking

  • 14-06-2021 3:37pm
    #1
    Registered Users Posts: 5,205 ✭✭✭ Elessar
    Registered User


    I know this has come up before but how are people treating taxes for staking rewards now?

    Guidance is not clear but from what I can gather it's classed as income that you declare at the end of year and not capital gains. Is that about right?

    If so from when do you calculate your tax?

    Say you get 1000 tokens per month as staking rewards, are you liable for the EUR equivalent at the time you get them (even if you don't convert) or is it only when you cash out?

    For example say over a year you get 12000 tokens but you don't convert to EUR, is it still classed as income and so you pay your income tax on it, or is it only when you convert?


Comments

  • Registered Users Posts: 352 ✭✭ AtticusFinch86
    Registered User


    Elessar wrote: »
    I know this has come up before but how are people treating taxes for staking rewards now?

    Guidance is not clear but from what I can gather it's classed as income that you declare at the end of year and not capital gains. Is that about right?

    If so from when do you calculate your tax?

    Say you get 1000 tokens per month as staking rewards, are you liable for the EUR equivalent at the time you get them (even if you don't convert) or is it only when you cash out?

    For example say over a year you get 12000 tokens but you don't convert to EUR, is it still classed as income and so you pay your income tax on it, or is it only when you convert?

    Dividends/interest from staked coins are almost certainly treated the same as any other interest/dividend generated from holding an asset i.e. it is subject to income tax (at the market value of the coins at the time of receipt) when recieved.

    They will subsequently be taxed under cgt rules when they are disposed of. (On the balance of the gain I.e.sellig price less market value at date of receipt)


  • Registered Users Posts: 443 ✭✭ Xaniaj
    Registered User


    Dividends/interest from staked coins are almost certainly treated the same as any other interest/dividend generated from holding an asset i.e. it is subject to income tax (at the market value of the coins at the time of receipt) when recieved.

    They will subsequently be taxed under cgt rules when they are disposed of. (On the balance of the gain I.e.sellig price less market value at date of receipt)

    Problem is tracking the stake rewards as some places give it daily, some weekly, some with no value at all.

    I'm been playing with a few exchanges, wallets to see what suits me best and I might stick with Celsius as the main place now as its weekly and it gives both the coin and the coin value.


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