After the final tax return period of the income tax (and reconstruction special income tax) for Heisei 29 years ended, the voice of the revision of the tax law on the virtual currency has strengthened. As many opinions at the moment, it is the following three points.
From general taxation to separate taxation
Tax exemption for small settlement
Tax deferral of virtual currency exchange
In this report, we will consider the feasibility of virtual currency separation taxation compared to existing taxation on the opinion that "income from virtual currency should be separated taxation" in ①.
What is income on income tax law?
Income tax is taxes on 'income'. In other words, you need to think about income first.
Income is the amount of money left by subtracting necessary expenses from the amount of income. For example, if you sell for 1 million yen at 2 million yen you will get 1 million yen profit. This one million yen profit will be income. Simply put, income is profit / profit. Loss is said to be negative income.
Although the term income is not defined by the income tax law, "How to capture personal income" is not limited to the virtual currency, it is one of the important things in interpreting the tax law.
Comparison of total taxation and separation taxation
According to the Income Tax Law, income is divided into 10 categories depending on the cause and nature of income. Interest, Dividend, Real Estate · Business · Salary · Retirement · Forest · Transfer · Temporary · Miscellaneous 10 types.
After dividing the income into 10 categories, we calculate the amount of income tax by applying the tax rate again with the income summarized again or in the state of classification. Comprehensive taxation to reassign classified income again and apply tax rate, and to apply tax rate while classifying income is called separation taxation.
Comprehensive taxation has the following characteristics.
It is a principle taxation method
Apply a progressive tax rate (income tax 5% to 45%)
For some income, profit and loss totaling is permitted
On the other hand, separation taxation has the following characteristics.
Compared with general taxation, it is a special taxation method
A fixed tax rate is set according to income (income tax 15%, local tax 5%, etc.)
It is not allowed to total profit and loss with other income
Income to which separation taxation is applied include land and building transfer income, transfer income such as stocks, miscellaneous income due to futures trading, etc.
Why are not these general income tax-free in principle applied separately taxation as a special case? "The amount of income tends to become large", "It is not permanent income", "it is a financial product" It is because it has such characteristics.
It is often pointed out that investors are less likely to enter the market by dividing income from virtual currency into miscellaneous income, but the same thing happens in the past. As far as stocks and FX are concerned, as a national policy to encourage investment activities, that is, as a policy consideration separating taxation.
Can income from virtual currency be separated taxation?
On December 1, Heisei 1, on the website of the National Tax Agency, I think that it is memorable to the memorial that a document stating that "income from virtual currency is subject to comprehensive taxation as miscellaneous income" was released . I personally do not think that comprehensive taxation of miscellaneous income will last forever. In any case, as with stocks and FX, there is a high possibility of separation taxation. However, if there is a feeling of speed enough to be realized in one or two years, that is nothing but wishful observation.
Let's look back on FX (foreign exchange margin trading) as an example of other financial products.
The mechanism of FX was launched around 2000, the financial futures trading law was revised in 2005 and registration of dealers dealing FX was obliged. And in 2009 we will oblige mandatory trust maintenance and we will protect investors. In this way, after establishing a mechanism to protect investor assets, income from FX became separating tax in 2012.
The same thing can be said for FX flow in virtual currency, investor's asset protection will be the top priority first. Currently it is the stage where the Financial Services Agency issues orders for business improvement from time to time to domestic virtual currency exchange offices / exchanges. At least, it can be said that realization of virtual currency separation taxation is difficult until the Financial Services Agency has finished building investor asset protection system.
Also, the nature of the virtual currency is different from existing financial products (stocks / FX), such as being able to move between exchanges. The problem of whether it is possible to treat items with different characteristics in the same way as the existing tax system is a very important issue and I think that as a tax authority we have to be cautious.
Of course, as virtual currency technology is promising in the future, it is undesirable that technology development is hindered by the national tax system. However, it is obvious that the country can not judge the future of one technology and steer towards its development. In particular, this tendency may be noticeable in Japan.
Therefore, as an answer to the question "Will income from virtual currency be separated taxation?", "It is highly likely that it will be in the future, but it will not be realized in one or two years" Will it be in shape? Although the speed to realize it is in proportion to the development of technology concerning the virtual currency, there is also a great possibility that the existing tax system can become a bottleneck of technology development.
Since this is not a problem that can be solved with only the virtual currency area, it is necessary to involve accounting tax side and request it. However, I personally think that separation taxation of the virtual currency is a temporary solution, and it is only ad hoc.
In the future it is necessary to realize "tax exemption of small settlement" and "tax deferral of exchanges between virtual currencies", more specifically "tax exemption of transaction itself by virtual currency" is a fundamental solution . Until then, rather than strongly hoping for tax law amendment, I think that it is good to develop a payable Wallet that automatically calculates income and make the application that conforms to the existing tax system.
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Thanks for the wonderful compliment. I will try best next time.
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