How to Pay Taxes on 8lends Income

Interest in USDC, 8LNDS sales, position exits — each triggers different rules across Spain, Germany, Portugal and France. Here's how to report every event correctly.

8lends does not withhold taxes on investors' income — each investor is responsible for declaring and paying taxes in their own jurisdiction. To track transactions and prepare reporting, we recommend using Blockpit — a certified crypto-tax service that automatically imports transactions from the Base blockchain by wallet address and generates a report tailored to the legislation of your country of residence. Tax treatment differs by country — see the separate articles for Spain, Germany, Portugal, and France. This article is a general guide, not individual tax advice.

Who is responsible for taxes on 8lends

Party	What they do regarding taxes
8lends (Alpha Systems LLC)	Does not withhold taxes. Does not file reporting on the investor's behalf to national tax authorities
Investor	Independently declares income and pays taxes according to the rules of their country of residence
Tax advisor / service (Blockpit, etc.)	Helps calculate the tax base and prepare the report

8lends operates under a non-custodial Web3 platform model: all transactions take place on a smart contract on the Base blockchain, which the investor initiates themselves. The platform does not act as a tax agent in any jurisdiction.

Which 8lends operations may be taxable

Typical events that may create tax obligations (depending on jurisdiction):

Receiving interest payments in USDC — often taxed as interest income
Repayment of the loan principal — usually not income (it is a return of the principal amount), but in some jurisdictions requires accounting
Receiving 8LNDS tokens through Proof of Loan — may be taxed as income at the time of receipt at market value
Selling 8LNDS on a DEX — may be taxed as a capital gain (profit from selling an asset)
Selling a position on the Secondary Market — may be taxed as a capital gain
Exchange rate differences on USDC — usually close to zero (USDC is pegged 1:1 to USD), but may arise in non-local currencies

What specifically is taxed for you and at what rate depends on your residency. See the localized articles (44–47).

What Blockpit is and how it helps

Blockpit is a European certified crypto-tax reporting service. It automatically:

Imports transactions from the Base blockchain by your wallet address
Recognizes operation types (investment, interest receipt, claim, sale)
Calculates the tax base according to the rules of the selected jurisdiction (supports 30+ countries)
Generates a ready tax report in the format accepted by the local tax authority
Exports data in formats for direct filing (depending on the country)

Blockpit is especially convenient because it covers not only 8lends but also parallel crypto operations (exchanges, DEXs, other protocols). This provides a single report on all crypto income.

Alternatives to Blockpit

If Blockpit is not suitable or does not support your country, you can use:

Koinly — a global service supporting 100+ countries, especially good for DeFi and wallets
CoinTracker — popular in the US, integrates with IRS forms and TurboTax
CoinTracking — a German service, historically strong in the DACH region and Europe
TokenTax — a global service focused on DeFi and complex operations
Manual accounting — exporting transaction history from basescan.org and calculating manually (for small volumes)

The choice of service is the investor's personal decision. 8lends has no exclusive partnership with any of them.

How to obtain data for the report

All transaction data is available without the platform's involvement:

Through the 8lends personal account — history of investments, payments, claims
Through basescan.org — all transactions by your wallet address are publicly available on-chain
Through a tax service's API — Blockpit and similar services pull data by wallet address automatically
Through manual export — exporting history from the personal account to CSV/Excel

What 8lends does NOT provide

Tax reports ready for filing — this is the task of a crypto-tax service, not the platform
Tax advice — 8lends does not give individual tax recommendations
Withholding tax at the source — not applicable
Reporting to national tax authorities — 8lends does not submit data to local tax authorities
Tax exemption — no model of working with 8lends exempts you from the obligation to declare income

Frequently Asked Questions

Does 8lends withhold tax when paying interest? No. All interest payments arrive at the smart contract in full. Withholding tax is the investor's task according to the rules of their jurisdiction.

Does 8lends file reporting to my tax authority? No. Alpha Systems LLC (the operator of 8lends) is a VASP company regulated by the FSA of Saint Vincent and the Grenadines. It does not file CRS / DAC reports to the national tax authorities of European countries. If such requirements arise for the investor, they file them themselves.

How do I obtain the full history of my transactions? The history can be obtained in three ways: in the 8lends personal account (the operations history section), through basescan.org (by wallet address, publicly on-chain), through automatic import into Blockpit or a similar service.

Is receiving 8LNDS tokens through Proof of Loan taxable? In most jurisdictions — yes, as income at the time of receipt at market value. The exact rate and accounting procedure depend on the country. See the localized articles (44–47) or consult a tax advisor.

What if I declare nothing — no one will find out? This is the investor's legal risk. Transactions on the Base blockchain are public and linked to a wallet address. Many tax jurisdictions already work with crypto data — especially the EU after the introduction of DAC8. Tax evasion entails fines and legal liability under local legislation.

Can I get an income statement from 8lends for the tax authority? 8lends does not issue statements in the format of national tax authorities. The replacement is a crypto-tax report from Blockpit or a similar service — it is generated based on on-chain data and accepted by the tax authorities of many countries.

Are losses on 8lends taxable (for example, in case of default)? In most jurisdictions, investment losses may reduce the tax base (capital loss). The specific rules differ — for example, whether it is possible to carry losses forward to future periods, whether they can be offset against other types of income. See the localized articles or a tax advisor.

⚠️ This article is a general guide on approaches, not individual tax advice. For specific decisions regarding your situation, consult a qualified tax advisor in your country of residence.