Regulation
Tax agency clarifies when staking rewards become taxable income
Guidance ties recognition to the point a holder can dispose of the reward, resolving a question that had split advisers.
Tax authorities have issued guidance stating that staking rewards are recognised as income at the moment the recipient obtains the practical ability to transfer or sell them, rather than when the protocol credits them.
The distinction is meaningful for networks with unbonding periods or locked reward balances, where a credited reward may be unusable for days or weeks.
Advisers had split on the question, with some recognising at protocol accrual and others at withdrawal. The guidance validates the later timing but requires taxpayers to document why a reward was unavailable.
Delegated staking through an exchange is treated the same way, with the platform's withdrawal terms determining availability.
Cost basis follows the fair market value at the recognition date, and subsequent movement produces a capital gain or loss on disposal.
The guidance is prospective, and the authority said it would not pursue reasonable positions taken in earlier periods under the previous ambiguity.
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