Cryptocurrency Investors to Pay 55 Percent Annual Tax Fee on Profits - Japanese National Tax Agency

Japanese National Tax Agency New rules on Cryptocurrencies 2018, Cryptocurrency Investors to Pay 55 Percent Annual Tax Fee on Profits.

According  to Bloomberg recent report on 8th Feb, 2018, Japanese cryptocurrency investors has been asked to pay an annual tax fee of  about 15 and 55 percent from their profits this year.

“last year” virtual currency capital gains on transactions are considered “miscellaneous income,” 

The above statement was made by the Japanese National Tax Agency 
Those who earn more than 40 mln yen a year (about $367,600) on cryptocurrency profits tax is higher than the around 20 percent tax levied on profits from stocks and foreign currencies.

Also, South Korea had announced in Jan. that crypto exchanges will be taxed 24.2 percent, in line with the existing tax policy for corporations.

According to Bloomberg, around 40 percent of Bitcoin (BTC) trading recently has been against the yen, meaning the country will receive a large revenue from taxing crypto.

The Japanese National Tax Agency is creating a database of cryptocurrency investors, potentially to ensure enforcement of the tax laws, as well as retaining teams in Tokyo and Osaka to watch electronic trading. This was made known to us by Bloomberg.

The US Internal Revenue Service (IRS) also reported today that they have created a 10 person team of investigators aimed at tracking down crypto users that failed to report their profits in their tax declarations.

Japan had recognized Bitcoin as a legal method of payment back in April 2017, a step towards helping the government prevent unregulated exchanges from hacks and mismanagement like the Mt. Gox meltdown in 2014.

We will keep updating you on Japanese National Tax Agency New rules on Cryptocurrencies 2018

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