Japan Plans Altering Crypto Taxation
June 28, 2018
Japan’s minister of finance has discussed the possibility of changing the current tax policy which foresees taxes for crypto investors from 15% to 55%.
Taro Aso, Japan’s minister of finance, was present at the meeting of the Upper House budget committee when senator raised a question on modifying the existing taxation policy for return on crypto investment.
For instance, the senator asked whether crypto return can be regarded as “separate declared taxation” rather than current “miscellaneous income”.
While Aso had nothing against this change, he doubted that people understand this decision and mentioned “tax fairness” and the “viewpoint of the international nature of virtual currency uncertainty”.
Japan’s national tax agency is now charges crypto investors from 15% to overwhelming 55%. Individuals with annual income of over 40 million yen pay the highest taxes.
Japan is not the only country that strives for increasing capital gain tax and such measures have driven many investors to move to countries with softer jurisdiction like Singapore.
New legislation may cut taxes to 20%, the rate used for gain on shares and foreign currency trade.