The latest report reveals that the Tokyo Government is set to present a new crypto tax system to prevent people from escaping from the huge profit tax made out of cryptocurrency. As per the related source on the matter, the National Tax Agency (NTA) will be demanding information regarding cryptocurrency transactions that have evaded taxes on their crypto earnings.
Suspected Tax Evaders and New Tax System
The new tax evading system on crypto earning will begin from Japan’s upcoming fiscal year – 1 April – 31 March.
It has been informed earlier that earning from cryptocurrency is considered as the miscellaneous income which falls under the Income Tax Act. Salaried individuals with least income of 200,000 yen per annum must disclose the matter to law and regard it as income.
Following the new reform, Japanese cryptocurrency exchanges will be accountable to legally share the information about their customers which must include customer name, his address, and 12-digit personal identification numbers. However the year 2018 was a rash for almost every user in the crypto market but in the year 2017, over 300 individuals have gained at least 100 million yet as per the data collected by NTA. This is because, during 2017, bitcoin and other cryptocurrencies were shooting the highs and this year trading with a negative graph.
As for now, only individuals who have earned a minimum of 10 million yen through crypto transactions and also if the authority feels that individual denies disclosing at least half of that income, must share their information. Individuals with below 10 million yen or those seem small-time holders need not worry about.
Japan has been in the crypto bulletin for a quite long – earlier this year, Japanese Financial Services Agency (FSI) established a self-regulatory status that enables industry leaders to form rules and safeguard the assets of customers as well as prevent possible money laundering activities.