Cryptocurrency Tax System to Be Simplified in Japan
The Japanese government is planning to dismantle the system currently in place for tax filing regarding cryptocurrency in hopes to make sure gains are accurately reported by investors.
A Better System for Taxpayers
A meeting took place headed by the Tax Commission, whose work is about creating suitable policies for taxation and providing advice to the country's prime minister on taxes, on October 17th. Discussions revolved around the possibilities of improving the system, as reported by Sankei, a local news company.
The new proposed system would standardize the current filing mechanism in a simple manner to have taxpayers easily determine the total profits from their sales of digital funds against all of the various cryptocurrencies.
Today, the process of calculating profits from cryptocurrency sales can be somewhat inconvenient, according to the report. The prices can vary according to each exchange and many platforms exist with no standardized ways to track data history. This makes submitting a correct tax filing report very difficult for taxpayers.
Minoru Nakazato, head of the committee, said that there are many frameworks to consider other than the tax system, so a meeting with experts will take place to broaden the discussion and take into consideration more opinions.
Presently, in Japan, a tax rate that ranges between fifteen and fifty-five percent is applied. It depends on a threshold value of 200,000 yen per year, which is equivalent to $1800.
Last June, it was reported by CoinDesk that lawmakers in the country suggested a change in the taxation cryptocurrency system to a more separate and determined one, but the prime minister had rejected the idea at that time.