Key takeaways
- Tangem Wallet does not report directly to the ATO.
- The ATO can still trace Tangem users through blockchain analytics and its crypto data-matching program.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Tangem Wallet’s tax reporting policies within Australia. We’ll also break down a simple way to report your Tangem Wallet taxes in minutes.
What is Tangem Wallet?
Tangem is a hardware wallet designed to look like a bank card. While Tangem allows you to securely hold your crypto offline, you can also manage your portfolio online through the Tangem mobile app!
Tangem does not collect Know Your Customer (KYC) information and does not issue tax forms. However, if you transfer crypto to or from an AUSTRAC-registered exchange, your wallet can likely be linked to your identity.
Does Tangem Wallet report to the ATO?
No. Tangem does not share information with the ATO or issue tax forms.
Still, the ATO has tools to trace your identity:
- Blockchain transparency: All transactions on the blockchains are publicly visible. It’s likely that if you transfer crypto from an Australian exchange, the ATO can track your identity.
- ATO data-matching: The ATO’s crypto data-matching program pulls records from AUSTRAC-registered exchanges and matches them against taxpayer records. The ATO likely uses this information to identify ‘anonymous’ wallets.
If I use Tangem Wallet in Australia, do I owe taxes?
Yes. Tangem transactions are taxable under Australian law:
- Capital gains: Selling, swapping, or spending crypto is a capital gains tax (CGT) event. If you’ve held the asset for more than 12 months, you qualify for a 50% CGT discount.
- Income: Staking rewards, airdrops, and similar earnings are taxed as income at their fair market value when received.
Moving crypto between your own wallets (such as from CoinSpot to Tangem) is not taxable.
Does Tangem Wallet have KYC?
No. Tangem does not require ID.
Is Tangem Wallet legal in Australia?
Yes. Tangem is legal to use in Australia.
You are required to report your taxable income from Tangem and other platforms to the ATO.
How do I avoid Tangem taxes in Australia?
While you can’t evade taxes, here are two steps you can take to legally reduce your tax bill:
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains and potentially save thousands on your taxes.
- Crypto tax software: Crypto tax software like CoinLedger helps Australians track Tangem transactions, save time filing their taxes, and identify opportunities for tax savings.
Looking for a simple way to report your Tangem Wallet taxes? With CoinLedger, you can import your Tangem Wallet transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Tangem Wallet and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Here’s why more than 700,000 investors around the globe choose CoinLedger:
- Import your transactions from Tangem and hundreds of other wallets
- Track your capital gains and income in one place
- Generate ready-to-lodge ATO tax reports
Get started with a free CoinLedger account today.
