Staking and mining

This article will explain how transactions related to staking and mining are imported to Coinpanda and handled in tax calculations.

Staking works differently depending on which platform or exchange you are using or if you are staking directly on-chain, but in most cases, you will send your crypto to a third party or staking contract and receive staking rewards in return daily or hourly. Whether or not sending coins to a staking pool or contract is considered a taxable event varies from country to country, so we recommend reaching out to a tax professional when in doubt. One of the aspects that must be considered is if you are maintaining ownership of your assets while they are being staked.

In most cases, Coinpanda will not import these transactions from exchanges, services, and other third-party platforms since the assets are practically still in your account. This means that transferring coins to a staking wallet or similar will not result in a disposal or capital gains tax.

However, on certain blockchains like Ethereum and other EVM chains, most staking deposits result in transferring your assets to an external staking contract. All transactions involving transferring coins to another address will be imported from API sync by default.

To handle this, Coinpanda will, in many cases, automatically tag such staking deposits as Receive (Staking Pool) when imported from API. The default tax setting is to treat transactions tagged as Staking Pool as non-taxable disposals, which means you will not realize any capital gains on the transactions other than the gas fees. If you believe the correct tax treatment in your country is to pay capital gains tax on all disposals related to transferring crypto to staking contracts, you can easily turn the setting off on the Settings page.

After ending your stake, you typically receive the coins or tokens back in your wallet or exchange account. Since receiving crypto is not taxable unless it's considered income, you don't need to worry about any income or capital gains tax when withdrawing your staked assets.

In most cases, Coinpanda will tag all your received staking rewards automatically when importing transactions either from API or by uploading CSV files. However, if you see any Receive transactions imported that are not tagged but should be tagged as Staking, you should change the tag yourself. You can also contact us in the Live Chat so we can check if we can update our integration to identify this automatically.

In some countries, staking rewards are not taxed as income at the time of receiving the rewards. Instead, you will pay capital gains tax on the full amount when the coins are sold in the future by considering a zero acquisition cost. In such cases, you should change the "Treat staking rewards as income" setting to off. The default setting for most countries is on.

Your tax report will include all Receive transactions tagged as Staking in Section 7 - Income summary.

Coinpanda supports the most popular mining services like NiceHash and Cudo Miner. All reward transactions imported by API or CSV file from such platforms will be tagged as Mining automatically. Similar to staking, all Recevie transactions tagged as Mining will be included in Section 7 - Income summary in your tax report.

If you have received mining rewards directly to your wallet address, you can create a wallet on Coinpanda, add your public address, and select Mining for "Tag incoming transactions as" in the Advanced Settings tab to tag all imported Receive transactions as Mining automatically.