Japan to Review Its Crypto Tax LawsOctober 18, 2018
Japan’s Tax Commission has announced that it will do all its best to find a simpler way through which tax filling for cryptocurrencies could be done. This move by the government is for the sole purpose of ensuring that investors make an accurate gain report when filling their tax.
Japan’s Tax Commission
Based on a recent report, Japan’s Tax Commission which is in-charge of all taxation related policies within the country as well as advising the prime minister held a general assembly meeting recently. The purpose of the meeting held is to discuss how the current taxation methods for cryptocurrency traders can be improved.
Japan’s Tax Commission has commenced work on finding a new taxation system which would help standardize the tax filing process and also make it convenient for taxpayers to calculate their profits on the sales of digital assets when compared to both fiat currencies and other cryptocurrencies.
Based on recent analysis, calculation of profits made from crypto trading is quite confusing for most people. Other important factors to consider is that the prices of cryptocurrencies on the different trading platform are not aligned, coupled with the difference that exists in the way which different platforms store their historical transaction data. All these factors contribute to making the process of submitting a proper tax filing very difficult.
The president of Japan’s Tax Commission, Minoru Nakazato has stated that:
“Since it is necessary to take into consideration frameworks other than the taxation system and business practices, we will hold a small meeting of experts to deepen the discussion while listening to outside opinions,”
Crypto Tax Filling in Japan Right Now
As of now, profits from the sale of cryptocurrencies in Japan are recorded under “miscellaneous income.” A sliding tax rate from 15 to 55 percent is applied, depending on the actual amount of gains above a threshold of 200,000 yen per year, or about $1,800.
Japan’s Lawmakers are also joining hand with the commission through the sponsoring of a bill that changes the classification of cryptos to “separate declared taxation,”.
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