Japan tax 27 Jun 2018
Japan officials consider crypto tax change, as Senator Kenji Fukimaki has asked if the change from its current "miscellaneous income" classification to "separate declared taxation” would be appropriate.
27 June, AtoZ Markets – One of the top Japanese authorities has stated that he was cautious about the idea of changing the cryptocurrency taxation in the country.
Japanese budget committee of the Upper House has held a meeting on June 25. During the event, Senator Kenji Fukimaki has suggested that Japanese tax policy on digital currency gains could be changed. He asked if the change from its current "miscellaneous income" classification to "separate declared taxation” would be appropriate.
However, Taro Aso, the deputy prime minister and the minister of finance, has stated that he would be cautious in regards to this change. He has explained that it was “doubtful” that the public would understand this change. He has referred to the “international nature” of cryptocurrency as the key reason why Japanese investors might not accept the change in crypto tax classification.
The finance minister further stated that he was unsure about the “tax fairness” of executing this change.
As of now, gains that are obtained by cryptocurrency investors can be taxed between 15 and 55 percent as per the miscellaneous income guidelines. Stock profits that are regarded as separate declared taxes, are falling under the 20 percent taxation in Japan.
The finance minister has doubts about the cryptocurrency taxation change. Yet, he still made it clear that he supports the Blockchain technology in general. He has stated that the technology has a lot of uses aside from just cryptocurrencies.
Earlier last week, the Virtual Currency Exchange Association of Japan (JVCEA) has announced that it plans to release new voluntary rules next week.
The official announcement of the regulatory framework is set for June 27th. The rules will reportedly include a ban on insider trading and penalties for cryptocurrency exchange employees in case they are involved in “inappropriate” trading linked to their privileged knowledge.
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