Revision of Taxation policies on Bitcoin in Japan,Australia

Bitcoin Exempt from Consumption Tax in Japan.

Japan revised consumption tax laws on Bitcoin on last Saturday, July 1. Bitcoins transactions no longer incur consumption tax of 8%

Similarly, Australia also ended Bitcoin double taxation.

Normally, a consumption tax increase was expected, but early June, Shinzo Abe, the Japanese Prime Minister announced that this increase was postponed until October 2019.

And now they are no longer subject to this tax during their operations in the crypto-currency markets.

Although the Japanese do not have to pay this tax during their crypto-transactions, they remain subject to other taxes like income tax, capital gain tax.

Thus, individuals and professionals pay no more than 8% on each transaction, but are subject to income tax and capital gain tax respectively.

According to Yuzo Kano, CEO of Bitflyer (the largest Japanese market in volume on crypto-currencies), this will lead to 3 points:

•  The first is that the Japanese will no longer have to pay an exorbitant price for each transaction.
• The second is that this will have positive psychological consequences on the Japanese who will see, more and more crypto-currencies as “real” currencies. Yuzo Kano points out that crypto-currencies are for the moment considered a legal means of payment but not as a currency.
• The third most important point is that Japanese trading markets will be able to access the world markets without having to pay this tax which made them less competitive

These elements should boost sales and transactions of Bitcoin in Japan and infuse new momentum into this crypto-economy.

We can expect to see a significant increase in transactions in crypto-currencies in the land of the rising sun.

(Also Read: 18 companies are applying for Cryptocurrency Exchange in Japan)

 Australia Removes Double Taxation on Bitcoin

After over a year of promise, the government of Australia has offically announced in it’s 2017-18 Budget that Digital Currencies such as Bitcoin will no longer be Double Taxed.

From July 1, purchases of digital currencies will no longer be subject to the Goods and Sevice Tax (GST).

Initially, before this policy, Australian consumers using Bitcoins could find themselves paying GST twice:

• Once on the purchase of the bitcoin itself, and
• The other on its use in exchange for other goods and services that are subject to the GST, according to the budget.

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