Crypto staking and DeFi returns there is no clear regulation yet in terms of taxes, but there is a declaration obligation.
Return Types
- Staking (in PoS coins)
- Liquidity providing (in DEXs)
- Yield farming
- Lending (Aave, Compound)
Tax Approach
- Can be treated as interest income
- Or capital gains
- Trading income on a continuing basis
- Annual statement
Calculation Challenges
- Large number of small transactions
- Instant price determination
- Token distributions
- Record keeping critical
Practical Recommendations
- Store transaction history (CSV)
- Tax software (TaxBit, Koinly)
- Financial advisor support
- Annual declaration
Council of State 4th Chamber
4. The Department considers crypto earnings to be "taxable income".
Tax and crypto lawyer is recommended.