I have crypto in Chainlink (overseas) from an overseas crypto trading company. Chainlink(overseas) want me to pay the Australian Income tax on the cash amount before they send it to my bank account in AUD and give me a certificate to show I’ve paid the tax.
I thought I would pay the tax on my individual tax return in Australia.
Hi @Grace-68,
No, you don’t need to pay Australian income tax before withdrawing your crypto to your Australian bank account. This request from the overseas trading company isn’t how Australian tax works. I would be cautious as requests like this may not be legitimate.
As an Australian resident for tax purposes, you pay tax on your crypto through your individual tax return. It doesn’t matter where the crypto is held or what platform you use.
When you dispose of crypto (for example, by converting it to Australian dollars or transferring it to your bank account) you may make a capital gain or loss. This is the difference between:
You report the gain or loss in your tax return for the year you dispose of the crypto. All crypto income and capital gains must be reported, no matter where they come from.
The overseas company shouldn’t be collecting Australian tax on your behalf or giving you a 'tax certificate'. Make sure you keep records for every crypto transaction so you can work out your tax correctly.
If you’re unsure whether the company is legitimate, you may want to speak with a registered tax agent, who can look at your situation and help you understand your obligations.
It’s also best not to send money or personal details until you’re confident the company is genuine. A common sign of a scam is when a platform pressures you to pay 'tax' or 'fees' before you can access your own money
Hi @Grace-68,
No, you don’t need to pay Australian income tax before withdrawing your crypto to your Australian bank account. This request from the overseas trading company isn’t how Australian tax works. I would be cautious as requests like this may not be legitimate.
As an Australian resident for tax purposes, you pay tax on your crypto through your individual tax return. It doesn’t matter where the crypto is held or what platform you use.
When you dispose of crypto (for example, by converting it to Australian dollars or transferring it to your bank account) you may make a capital gain or loss. This is the difference between:
You report the gain or loss in your tax return for the year you dispose of the crypto. All crypto income and capital gains must be reported, no matter where they come from.
The overseas company shouldn’t be collecting Australian tax on your behalf or giving you a 'tax certificate'. Make sure you keep records for every crypto transaction so you can work out your tax correctly.
If you’re unsure whether the company is legitimate, you may want to speak with a registered tax agent, who can look at your situation and help you understand your obligations.
It’s also best not to send money or personal details until you’re confident the company is genuine. A common sign of a scam is when a platform pressures you to pay 'tax' or 'fees' before you can access your own money
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
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