Luxembourg tax settings

Tax Questions
1

Hi I am from Luxembourg and am currently trying your free plan to see if Koinly suits my needs. Therefore i have a few questions: After I uploaded all the CSV I saw that the amount of my crypto gains was too high. I found out that Koinly also sees cashback as capital gain even if unsold.

  • In Luxembourg cashback is only taxable if the received crypto has been sold or converted either in FIAT or in CRYPTO.

  • Another thing is that capital gains on crypto are only taxed if they have been sold or converted before 6 months have passed (but i do not see any mention of this rule on your app or foum).

Are there some settings that can be changed? Is the 6 month long term rule considered in the calculation of the tax?
Can we verify if the rules correspond to reality?
Thank you in advance.

2

Hi @Efes

Thanks for your message. :blush:

  1. Are you able to attach a screenshot of one of the cashback transactions? Cashback would be classed as a deposit and shouldn’t be taxable.

  2. Yes, the tax reports will note your transactions as being short term or long term and will be calculated accordingly. :+1:t2:

3

Hi Carl, you are correct. I miss read cashback are not taxed.

But I noticed something else which I think is an issue, the long term holding is not considered as long term. Notice that in Luxembourg all asset held more than 6 month is free from capital gain tax. But when I checked my transactions I found many where this rule didn’t apply.
Is there a way to check these rules and tweak them if they are incorrect?

Thank you

6

Hi @Efes

Apologies for the confusion.

We already have the long-term threshold for Luxembourg set as 6 months, so when generating your “Complete tax report”, you will have a breakdown of total long- and short-term gains.

5

Dear Aria,
the support ticket does not work and I cannot add the official communication on this post.
Please provide me with an email.
Thanks

7

Has this problem been resolved, I see the same problem?
I’m from Luxembourg too and crypto I have kept longer then 6 month but under a year is still considered short term.
Thanks

8

Hi @VirtualCk

There is no issue with the reports. Capital gains from assets that have a holding period of over 6 months are marked as Long Term gains on your Complete Tax report.

9

Hi Aria
Ok, so it’s just not working for the “tax optimization” and “maturity assets” but working for the tax report, right?
Thanks

10

Hi @VirtualCk

The Tax Optimization and Asset Maturity features both consider the 6-month holding period so they should be working.

11

Hello,

Does the calculation take into account conversion between different coins? Is it a trigger for a taxable event?

12

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