Japan and Australia the abolition of bitcoin consumption tax

Japan and Australia the abolition of bitcoin consumption tax

    

In July 1st, the revised consumer law formally take effect throughout japan. Thus, bitcoin transactions no longer receive 8% consumption tax. The same day, Australia also fully suspended bitcoin double taxation.

The Japanese government has approved the digital currency bitcoin tax exempt from consumption tax. Bitflyer explained:

Law formally implemented in July 1, 2017, the virtual currency transactions [] will be free to buy / sell consumption tax items.

Japan’s consumption tax rate is currently 8%, the tax plan in April 2017. However, in June 1, 2016, Japanese Prime Minister Abe Shinzo announced that “the implementation of the time consumption tax rate increased to 10% from April 2017 until October 2019,” Japan External Trade Organization pointed out.

Although the revised law on the revocation of the digital currency consumption tax, but there is still a need to pay other taxes, such as income tax, capital gains tax or corporate income tax.

Bitflyer in detail: “if from virtual currency income is earned by individuals, (according to Japanese taxation standards) which will serve as a miscellaneous income tax on total income, but also. Is the company to earn, is regarded as operating income.”

In July 1st, Australia announced to reduce the tax on the digital currency act. EasyGSTRefunds said: “Australia GST (goods and services tax) is equivalent to the rest of the world consumption tax.”

EasyGSTRefunds is a professional GST service for the global refund mechanism.

As early as a year ago, Australia had to companies that will solve the problem of double taxation — whether through bitcoin sell goods and services (GST), or as a means of payment in bitcoin transactions, are required to pay taxes.

Bitcoin86 reported in May this year pointed out, “the Australian government wrote in the 2017 – 18 budget table, part of our plan is to improve the digital currency business operating in Australia, to” more easily”. The government does not levy general sales tax to any supply chain products (GST).”

“From the beginning of July 1, 2017, the purchase of digital currency no longer be included in the GST scope of Taxation, digital currency will also be recognized as a type of currency.”

Previously, the use of the digital currency, consumers need to pay two tax, GST: a digital currency to buy, two, in exchange for the use of digital currency to purchase goods and services.

The Australian government finally for encryption currency industry to create a more free environment for development.

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