In line with a recent news by native reporting outlet named ‘Asahi Shimbun’, Japan-based entities have didn’t reported their cryptocurrency gains valued at around 10 Bln yen [around $93 Mln’s] over the past few years by March 2019.
As per Asahi, around 30 cryptocurrency-related businesses and about 50 users have not reported their revenues from crypto trading as of March, allegedly because of a high taxation rate on these types of financial gains.
Till date, ‘Japanese‘ tax regulators reportedly take into account crypto-related revenues as miscellaneous financial gain, that is taxed at 55%. In accordance with the present laws, native entities who earn above 2,000 yen [around $1,850 USD] in such financial gain on an annual basis are needed to disclose it, the article outlined.
As ‘reported‘ earlier, so as to combat tax evasion within the industry, the Japanese government is getting ready for a new system which will authorize the NTA [National Tax Agency] to request revenue data from cryptocurrency exchanges, along with names and addresses. Expected to be introduced later by April 2020, the new law will permit the NTA to request information primarily for those users whose earnings from cryptocurrency amounted to above 10 Mln yen [around $88,700 USD].
Asahi added that the new system is expected to be launched by Jan. 2020, and it’ll additionally authorize the Japanese government to punish those exchanges or cryptocurrency operators who fail to disclose the required information.
Also earlier this year, the JANE [Japan Association of New Economy] ‘asked‘ the Japanese FSA [Financial Services Agency] to consider minimising crypto taxes from the existing 55% to 20%. The association has additionally asked the regulator to impose no taxation for crypto-to-crypto related transactions.
Moreover, Japan, is ‘reportedly‘ ranked as the 2nd largest country globally for traffic to ‘crypto-currency‘ exchanges, after the U.S., has recently passed new cryptocurrency regulation within the upper house of the parliament. The lower house has however suggested legal amendments aiming to strict native laws on cryptocurrency trading activities, as well as margin trading.