Japanese cryptocurrency investors will have to pay up to 55% of profits in taxes

Japanese cryptocurrency investors will have to pay up to 55% of profits in taxes

According to Bloomberg, the Japanese cryptocurrency investors will have to pay a tax which ranges from 15 to 55 percent of the profits recorded in their annual tax returns.

Last year the Japanese national tax Agency has decided that the capital gain on transactions with the virtual currency is considered “other income.

Tax on profit from transactions with cryptocurrencies higher than 20 percent tax levied on profit from operations with shares and foreign currencies, and a higher percentage will have to pay those who earned more than 40 million yen per year (about $ 367.600 USA).

For comparison, South Korea announced in January that transactions with cryptocurrencies will be taxed at 24.2 percent, in line with existing tax policy.

According to Bloomberg, about 40 percent of all transactions with bitcoins (BTC) are in yen, which means that the country will receive a large revenue from taxation of operations with cryptocurrencies.

Bloomberg reports that the Japanese national tax Agency creates a database of cryptocurrency investors, which potentially needs to provide tax compliance, and special divisions in Tokyo and Osaka for monitoring cryptocurrency transactions.

The internal revenue service US (IRS) have also reported that they have created a group of investigators of 10 people whose task is to identify cryptocurrency investors evade taxes.

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