Japanese Cryptocurrency Investors To Pay Tax Between 15- 55% On Profits
Cryptocurrency investors in Japan will have to pay tax abround 15-55% of the profits declared by them on the annual tax filed this year as per the reports by Bloomberg.
The capital gains on transactions entered into through the cryptocurrency mode have already been ruled “last year” by the Japanese National Tax Agency for being classified as “miscellaneous income.” Profits arising on foreign currencies and stocks are taxed at 20% with higher percentage levied on those with an annual earning exceeding 40 million. But the taxation structure on cryptocurrencies shall place these virtual assets under a higher levy bracket compared to the rest.
South Korea on the other hand had announced back in January that the 24.2% tax shall be levied on the crypto exchanges in line with the exiting policy guidelines for corporations. 40% of international Bitcoin trading has recently been reported to be against yen ensuring a fuller kitty of the tax authorities by taxing cryptos.
According to reports published by Bloomberg, a database is being created by the Japanese National Tax Agency containing information about crypto investors. This database is expected to be of great help in ensuring enforcement of tax laws and retaining teams in Osaka and Tokyo to watch electronic trading. A team of 10 investigators belonging to the US Internal Revenue Service (IRS) have been tracking down crypto users who failed to properly report their tax declarations. Bitcoin had already received legal recognition in Japan since April 2017 thus aiding government in preventing unregulated exchanges for mismanagement and hacks such as the meltdown of Mt. Gox in 2014.
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