Japanese Lawmaker Suggests Four New Changes To Simplify Crypto Investors’ Tax Burden
Japanese Lawmaker Proposed To Ease Crypto Tax Burden With 4 New Changes
Many crypto investors complain that they are too taxed for holding and trading crypto. According to them, the tax regulation for the industry is simply not good at all. Because of this, a Japanese lawmaker named Takeshi Fujimaki has proposed four different changes in the current tax law that will ease the burden of crypto investors.
It was revealed that Fujimaki showed these propositions at a meeting which was held in the first week of December. He acted as a representative for Nippon Ishin, the third-largest opposition political party in the country.
According to him, taxes are too high and they could “crush the future” of digital currencies in Japan. Therefore, in order to form a wider spread of virtual currencies in the country, the government would have to ease the taxation of crypto.
The Four New Propositions
The first change proposed by Takeshi suggested that, as crypto gains are not as stable as a salary, the taxation should be lower. So instead of 55%, the current rate, he proposed 20%. This, he affirms, would put them in pair with other investment options and stocks in the country.
Secondly, he recommended that losses should also be accountable in the tax system, as it would be fairer to profit only all the money a trader is able to make, but his real profit instead.
While the current system takes into account your profits daily and monthly and you will have to pay the taxes during a whole year, he wants that people who had losses in a year could discount these losses from their next year. He also pointed out that other systems such as stocks and property offer these options.
Thirdly, he affirmed that there should be created a tax exemption for the people that traded two virtual currencies. According to the current law, you have to pay taxes if you make a profit trading Bitcoin for XRP, for instance, but he believes it would raise the volume of transactions and alleviate some of the burdens if the government simply made a less cumbersome system.
The last of the four points was that there should also be an exemption for small crypto payments. The current law states that if you use Bitcoin to pay something, you have to pay taxes over your profit from crypto to fiat. Takeshi argued that this is would stop cryptos from entering society because it would complicate their use too much.
Takeshi is already a defender of the crypto market for some time. He touched the same issues of crypto taxation back in June when he suggested that people should declare their crypto profits separately and that it would make it simpler. The prime minister at the time affirmed that the public would not understand the change and pushed it back.
Now, as the crypto tax commission of the country is trying to simplify crypto taxes, Takeshi could help them a lot if they decide not to reject his ideas simply because he is a part of the political opposition in the country.