Japanese cryptocurrency investor income will be tax 15% -55%

nRunaway comment: The Japanese government has provided cryptocurrency investors in accordance with the tax rate of 15% -55%. The tax rate of up to 55% is still high, regardless of the tax rate in its own traditional financial sector or in foreign countries. Since Japan is currently one of the largest markets for cryptocurrency in the world, it will undoubtedly bring big revenues to its government. The implementation of this provision is also worth the attention.n
nTranslation: Inan
According to a Bloomberg report on February 8, Japanese cryptocurrency investors will pay 15% to 55% of their profits according to the information in their annual tax returns.n
Bloomberg wrote that the Japan Revenue Agency has ruled that “last year’s” capital gains on virtual currency transactions will be treated as “miscellaneous income.”n
The tax on cryptocurrencies is higher than the tax on stocks and foreign currencies, which is around 20%, although tax rates are set for those with incomes over 40 million yen (about $ 367,600).n
And South Korea also announced in January that it will set a tax rate of 24.2% on locally-encrypted exchanges in line with its current corporate tax policy.n
According to Bloomberg, about 40% of bitcoin transactions are conducted in Japanese yen recently, which means that Japan will earn large sums by taxing cryptocurrencies.n
Bloomberg notes that the Japan Revenue Agency is creating a cryptocurrency investor database that may be used to ensure tax law enforcement and will set up groups in Tokyo and Osaka to view electronic transactions.n
The IRS also announced today that it has formed a 10-person panel to investigate users who did not report their cryptocurrencies on tax filing.n
Japan has seen bitcoin as a legitimate payment method since April 2017, a move that helps governments prevent hacking and mismanagement of unregulated exchanges such as Mt. Gox’s collapse.n

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