Japan Seeks To Simplify Cryptocurrency Tax Reporting

Sankei News quoted the organization as saying:

“The environment should be adjusted so that tax returns can be simplified.”

Japan intends to enhance and protect their economy via regulating cryptocurrency as they observe a significant local boom in the ecosystem.  While a complex set of rules regulate the taxation processes, the rules are stringent as well. The Sankei notes that the consumers are requisite to file tax return on any annual gains over 200,000 yen ($1780).

After examining the taxation reporting, the U.S. authorities has forewarned that the number of consumers who file crypto returns is minimal, and the number who do so correctly is even lesser.  The  U.S. since then has dedicatedly developed tools that aim to simply the tax returns for investors, specifically geared to the country’s tax authority the Internal Revenue Service (IRS).

Japan on the other hand lacks this system. The officials stated that the employing a simplified regime would allow easy calculation of cryptocurrency holdings where phenomena such as inheritance and donation tax are included. They added that the system should “be able to grasp the asset price appropriately.” 

Read more: Japan’s Strict Regulation is “Good For” Coinbase Says CPO Mike Lempres