Japanese government seeks to simplify crypto tax filing system
Fri, 19 Oct 2018, 07:42 am UTC
The Japanese Tax Commission is seeking to simplify the tax filing system for cryptocurrencies to ensure that investors can report their gains accurately, CoinDesk reported, referring to a report from local news outlet Sankei.
Currently, investors in Japan have to declare their profits from the sale of cryptocurrencies, which fall under “miscellaneous income”, in filings to the National Tax Agency. The tax rates range from 15 to 55 percent depending on the actual amount of gains above a threshold of 200,000 yen per year (approximately $1,800).
On October 17, the commission held a general assembly meeting to discuss possible improvements to the filing process.
The current process of calculating profits from the sale of digital assets could be quite complex as the price of a cryptocurrency can vary on different exchange platforms. In addition, there is a lack of a standardized way in which these platforms store their historical transaction data.
The committee is reportedly considering a new system that would standardize the current process as well as simplify calculating tax on crypto profits against both fiat and other cryptocurrencies.
"Since it is necessary to take into consideration frameworks other than the taxation system and business practices, we will hold a small meeting of experts to deepen the discussion while listening to outside opinions," Minoru Nakazato, president of the Tax Committee (as translated by CoinDesk).
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