Japan’s Tax Commission is Working to Ease Crypto Tax Filings to Stimulate More Reporting
Japanese Government Working to Simplify Cryptocurrency Tax Filings
Japanese tax authorities are not leaving anything to chance – as cryptocurrency investments continue to rise in the country – they are now seeking ways to ensure taxes from crypto investments are duly recorded and collected.
The tax commission said to reached the decision after rising from its general assembly. Where they discuss how to improve the sector. Their plan is to improve and standardize the tax reporting system in the country so crypto investment profits can be calculated easily.
Minoru Nakazato, president of the Tax Committee said since it is necessary to take into consideration frameworks other than the taxation system and business practices, He added that they will hold a small meeting of experts to deepen the discussion while listening to outside opinions.
These standards are needed in the sector for a number of reasons including the varying price of crypto across exchanges, which makes it hard for investors to calculate their profits. As such, taxpayers may find it difficult to submit a proper tax filing.
At present, crypto profits in Japan fall under “miscellaneous income.” A sliding tax rate from 15 to 55 percent is applied, depending on the actual amount of gains above a threshold of 200,000 yen per year, or about $1,800.
Lawmakers in Japan had raised the issue of changing crypto taxation from its current classification to that of “separate declared taxation,” although Japan's deputy prime minister pushed back that suggestion at the time.