Japanese Deputy Prime Minister Taro Aso has proposed establishing a general tax rate for all cryptocurrency transactions.
Currently in Japan, profits from cryptocurrency transactions are classified as “miscellaneous financial income.” Different rates apply to different types of transactions. There are seven progressive tax rates, ranging from 5 to 45 percent of profits. Local governments also levy a 10% tax on “resident income.”
Aso has proposed setting cryptocurrency transactions at the same tax rate as any stock exchange income, namely 20% of profits.
According to the Policy Research Institute of the Japanese Ministry of Finance, profits from the sale of certain securities (including stocks, corporate interests, bonds with a stock option, etc.) are taxed separately from other sources of income at a flat rate 20.315 percent (i.e. 15.315 percent national tax and 5 percent resident income tax).
This regulatory decision may be related to the collective statement of the Japanese cryptocurrency trading community, which was filed on Change.org and called on the National Tax Agency (NTA) to change the unjustified policy of taxing cryptocurrency activities.
Japan is the most cryptocurrency-friendly of the economies. More than 3.5 million people in Japan trade cryptocurrency. The Japanese yen has gained a competitive advantage over other national currencies in accepting bitcoin and has allowed cryptocurrency exchanges to flourish, according to a report by the Japan Financial Services Agency (FSA).
According to rttnews.com
You May Also Like
Redistribution of zones of influence on South Korean crypto exchanges
In September, the South Korean government introduced harsh measures against crypto exchanges. The “bloody massacre” led to the fact that out of several dozen sites, less than ten remained afloat. Between the survivors, something began that can be compared to the times of the 90s, through which the business of post-Soviet countries went through.
Japan publishes draft report on new cryptocurrency regulation
The report provides solutions to problems that are not currently covered by existing laws. Namely: hacking, self-regulation, purported dealers, privacy and margin trading.
