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Hong Kong Launches First Crypto-Asset Tax Reporting Software

source-logo  thenewscrypto.com 20 May 2024 09:36, UTC
  • Hong Kong’s first crypto-asset tax reporting software, FinTax was launched today.
  • The software will help in calculating crypto-asset salary tax and profits tax.

Hong Kong has witnessed numerous advancements in the digital assets sector these past few weeks. Notably today, TaxDAO, a Web3 Finance and Tax organisation launched the first crypto-asset tax reporting software earlier today. The software formerly named Intax was upgraded to FinTax and began seed funding today.

With the launch of e-CNY wallets last week, and the approval of BTC and ETH Spot ETFs, the capital has been leading China into the world of digital assets. The increasing shift to decentralised finance and cryptocurrency has also led to an increased focus on tax regulations.

How Does FinTax Enhance TaxDAO?

TaxDAO was founded in 2023 by former Bitmain Tax Director, Calix. He and his team stated having international experience in tax compliance and planning for cryptographic assets. The organisation has been actively involved in providing consulting services on digital assets taxation and tax compliance.

Moreover, the software, FinTax, is expected to aid in completing the calculation of crypto-asset salary tax and profits tax as reported by Wu Blockchain. Furthermore, it will also export the tax bureau BIR60 form and its schedule.

BIR60 is a type of tax return in Hong Kong that is directed at individuals. It enables the citizens to report all their employment income, profits from sole-proprietorship businesses, and rental incomes from solely owned properties in a single return.

Additionally, FinTax has integrated with multiple popular exchanges including Telegram and Binance. Its predecessor, InTax provided services in data management, accounting, tax return, and tax consultation similar to TaxDAO. However, FinTax focuses on tax calculation and reporting the cumulative tax of digital assets owned by the customer.

As aforementioned, FinTax is currently in its seed round of funding. The software’s success is yet to be determined after its full implementation and active usage. Tax regulations for digital assets have become quite a focal point in multiple countries in the recent past, spearheaded by the US SEC.