Find out what the different settings in Divly do and how you should apply them.
What should I set as my country?
Set this to the country you will be filing your taxes in.
Divly uses the country setting to apply specific tax calculations for certain types of transactions (labels) as well as providing you with localized tax reports. Divly will ask you to choose your country when you create your account, but you can always change it under Settings.
If you need to declare taxes in multiple countries then you easily swap between countries by changing the country setting. Divly will automatically change the tax calculation rules to fit the country. Once you click the button to recalculate your gains, you will be able to access the local tax report for your second country.
Divly spends a lot of time ensuring that the countries we support use up to date tax rules. Currently Divly supports the following countries:
What should I set as my currency?
Set this to your local currency you will be reporting your taxes in. This is also known as your country's "fiat currency". Your local tax authority dictates what fiat currency should be used to calculate your taxes with.
Divly uses the Currency setting to calculate market prices, cost basis, and your taxable gains or losses. The Currency can only be set to a fiat currency (not a cryptocurrency).
This does not mean you can't trade crypto with another fiat currency. You can buy and sell crypto with whatever currency you prefer. Divly will ensure that both fiat currencies and cryptocurrencies are converted to your Base Currency when calculating your gains.
Divly supports all major fiat currencies.
What cost basis method should I use for capital gains tax?
Set the cost basis method to the one accepted by your local tax authority. We recommend using the default one set by Divly based on your home country.
To calculate your capital gains or losses, we need to apply a specific cost basis method. When you sell a cryptocurrency, we need to calculate what that cryptocurrency was purchased for. Different tax authorities will have different requirements on how to calculate the costs.
The most common cost basis methods are:
ACB (Average Cost Basis) - Uses the average cost of the asset you purchased to calculate the capital gains/losses. In Sweden this is called Genomsnittsmetoden.
FIFO (First in First Out) - Uses the cost of the first asset you purchased to calculate the capital gains/losses.
LIFO (Last in First Out) - Uses the cost of the last asset you purchased to calculate the capital gains/losses.
We will be providing an in-depth blog post in the future explaining each methodology in detail.
Should I enable or disable "Tax crypto to crypto trade"?
Enable this option if your country treats all crypto to crypto trades (e.g. BTC for ETH) as taxable events.
In most countries you are liable to pay taxes on gains or losses incurred when you trade crypto for crypto, such as when exchanging Bitcoin for Ether. As long as this option is turned on, Divly will do the heavy lifting and calculate your gains/losses for every crypto to crypto trade in your base currency.
Stable coins like USDC and USDT also count as cryptocurrencies.
There are a few countries where crypto to crypto trades are not taxed. For these exceptions you can turn this setting off.
What should I set as my “Timezone”?
Set this to your country’s local timezone. If your country has several timezones, make sure to check which one your local tax authority uses
Divly uses this setting to determine the starting time of a day. Each transaction has a timestamp that is displayed on the Transactions page.
The effect of this on a specific tax year could be significant if you happen to have transactions early on the first day of the year, or late on the last day of the year. Make sure that your timezone is set correctly to avoid any issues.
What should I set as the “Start of tax year”?
Set this to the first date of your country’s tax year.
A tax year will always be 12 months long, yet the dates for which it starts depends on the country. Most countries' tax year follows the calendar year, however many countries' tax years start on different months and sometimes even different days of the month.
Divly uses this setting when generating your tax reports.