Japanese Crypto Traders Could Be Paying As Much As 55% in Capital Gains Tax
Hi All,
Its really bad news for Japanese Cryptocurrency lovers. The high rates have caused some crypto-wealthy individuals to leave the country.
The Japanese National Tax Agency has put a hefty price tag on capital gains made through crypto trading. According to a Bloomberg report, crypto traders are legally obligated to pay anywhere from 15 to 55 percent of their earnings to the Japanese government; gains made through forex exchange and trading stocks are typically taxed at roughy 20 percent.
Earnings will need to be reported as ‘miscellaneous income’ by the end of Japan’s tax season, which runs from February 16 to March 15.
Japan has long been considered one of the most crypto-friendly nations in the world. It was the first country ever to legally declare Ethereum and Bitcoin as legitimate forms of payment with the Japanese Virtual Currency Act of April 2017. The VCA is often credited with much of the meteoric rise in the valuation of BTC and ETH in June of 2017 and the subsequent movement of the cryptosphere toward mainstream fintech.
Therefore, the news that capital gains made through crypto are being taxed at such a high rate has gotten some mixed reactions within the crypto community. Bloomberg reported that some individuals who have made their fortunes trading crypto have already made the decision to leave Japan for jurisdictions that don’t charge any tax on crypto capital gains, like nearby Singapore.
Governments Around the World Are Still Developing Tax Codes For Crypto (Or Not)
The Japanese government does stand to have much to gain through crypto taxation. Some reports estimate that over the past several months, 40 percent of BTC trades have been made against the Japanese Yen.
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Dear steemer,
nice post and I followed you :) Please follow me :)
Thank you.
This is why you shouldn't disclose your information.. it's better to make transactions in person if you want it in cash.
exactly!! Its started last year that USA people volunteered that they gained money from coinbase, so its started everywhere that IRS forcing coinbase to give all customers info . the same has been happening around the world. Otherwise the tax issue is not an issue in near term.