Crypto Investors in Japan - 2017 is the year in which many crypto millionaires are made worldwide. Thanks to the explosion in the value of digital currencies, investors see significant profits from their investments.
$ 380 Million Out of Work Tax
Reports from Japan show that 331 crypto investors earn at least $ 1 million as a result of their trade by the National Tax Agency (NTA). At least $ 331 million in profits is generated by this group.
The NTA report shows that a total of 21.98 million Japanese citizens state taxes outside their normal work, which amounts to more than 41.4 billion yen ($ 380.1 million). The taxes collected in 2017 exceeded the 2016 total of three percent, which is mainly due to strong economic growth.
Of those who announced their taxes, 549 of them had $ 1 million in non-operating or non-operating profits, typically generated from investments in property, assets and stock. Of these 549 people, 331 of them have invested in the digital currency market and have generated profits from trading of $ 1 million or more.
Crypto Gets Tax of 55 Percent
By 2017, the NTA and Financial Services Institutions have applied a 55 percent tax rate on non-operating profits derived from investments. As a result, the benefits of cryptocurrency will be taxed up to 55 percent, especially for people who have made a profit of over 40 million yen.
Having said this, the specific details about the taxation of cryptocurrency have not been completely clarified by the government authorities, with many investors in the country becoming somewhat disappointed with the markets in their country today. This means that many cryptocurrency investors are still unclear as to what the best course of action might be for them.
The United States has taken a rigorous stance to track the benefits of cryptocurrency for tax purposes, after trying to get people like Coinbase to ensure that cryptocurrency investors pay the necessary taxes.
In Japan, they take a softer stance. 331 investors who generate at least $ 1 million in profits from cryptocurrency trades all declare this income to the authorities, and the NTA seems happy to keep the voluntary tax declaration in place for profits made through crypto trading.
Many Crypto Merchants May Not Declare Profits
There are doubts as to whether the number of investors who have earned at least $ 1 million is accurate and it is likely that many investors will not bother to declare crypto related revenues to the authorities.
Due to the rapid rise in the popularity of the crypto sector and the fact that crypto revenues are not as clear to taxation authorities as fiat currencies, chances are many investors do not report their profits.
There is a lot of talk in South Korea today regarding the attitude that the authorities will take with the taxation of crypto currency trading. They seem to be increasing their current ban on initial coin offerings (ICO) that have been in existence since September 2017, and it is likely that they will follow the same self-voluntary declaration approach as seen in Japan.