Important Notice

Handling of cryptocurrency transaction fees

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Thank you for using cryptact.

Since launching cryptact, under the supervision of our consulting tax account, the calculation method for fees paid in cryptocurrency was different depending on whether the currency being used was the transaction's base currency, counter (or quoted) currency, or an alternative currency. To unify these calculations and methodology, starting from September 26, 2023, we have standardized the process as follows.

Methodology

The following calculation method will be applied to all cryptocurrency transaction fees.

The value of the fee paid, in your reporting currency (ex. Yen), will continue to be associated with the respective currency of the original transaction and will be expensed when that currency position is closed, in-line with our existing fee calculations.

A new, separate transaction will be generated to represent the cryptocurrency consumed (sold) in the original transaction.

  • This transaction will show up as a new “Fee/Paid” transaction in your transaction history.
  • Note that if you received a commission (i.e. a negative fee) for trading, this amount will show up as a “Fee/Receive” (purchase) transaction.

Note that fee handling for fiat currencies (Yen, USD, EUR, GBP, etc.) is not affected by these changes.

Implementation date

September 27th, 2023

Impact for users

The above process will be applied to transactions done in fiscal year 2023 (*1). If you have already uploaded data for 2023, there is a possibility that there may be variations in the profit and loss results of some of your transactions. Transactions prior to fiscal year 2023 will not be affected as their profit and loss results are fixed by our newly introduced Data Locking functionality. See here for details.

(*1) If your fiscal year end is set to December (the default for most users), the changes will potentially affect transactions after January 1st, 2023. Transactions up to December 31st, 2022, will not be affected as their profit and loss are finalized by our Data Locking functionality.

Additionally, automatically generated "Fee/Paid" and “Fee/Receive” transactions will not be counted towards annual transaction limits for paid plans. Therefore, the addition of these fee payment histories will not require a plan upgrade. You will also be able to filter your transaction history on these new transaction types to see all of the cryptocurrency you use to pay/receive fees at a glance.

You can login to your cryptact account and check out these updates here.

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