Japanese Bitcoin Exchanges Will Be Obliged to Report Tax Violations

Japanese Bitcoin Exchanges Will Be Obliged to Report Tax Violations

Japan prepares amendments to legislation, according to which the National Tax Agency of Japan (NTA) will be able to demand information about clients suspected of avoiding taxes from cryptocurrency exchanges.

The current legislation allows Bitcoin exchanges to transfer information about customers on a voluntary basis. Amendments to the tax law involve the cooperation of exchanges with the authorities at the request of the latter.

“However, due to personal information protection concerns, the government intends to allow the tax authority to request information only on those believed to have earned at least 10 million yen from cryptocurrency transactions, and only if the authority has confirmed that the customer has failed to report at least half that income,” writes The Mainichi.

Currently, crypto trading revenues in Japan are regarded as other income tax receipts. Declarations are subject to amounts from 200,000 yen ($1,800) per year.

According to the publication, in 2017 more than 300 Japanese citizens earned more than 100 million yen ($900,000) from trading in digital assets.

In turn, NTA experts say that the number of tax evasion cases in this sector is growing and the real number of traders who earn money on cryptocurrency can be much higher.

It is expected that new rules will be established during the tax reform of 2019 and implemented in 2020.

In November, Polish President Andrzej Duda signed a bill that imposes a 19% tax on income from operations with cryptocurrencies. According to the document, the profit from operations with cryptocurrencies is equivalent to capital gains. The rate of 19% is the same for individuals and organizations. However, the tax is not charged when converting one cryptocurrency to another, but only when exchanging digital assets for fiat money, goods, services, etc.

Leave a comment

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry that something went wrong, repeat again!