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

#4

Hi @Efes

We show the holding period and whether disposed assets are long-term or short-term on the Complete Tax report, however, the holding period is set to 1 year and not 6 months.

Please create a support ticket and share official links about the 6-month holding period rule in Luxembourg so that we can investigate this. https://koinly.io/contact/