I was browsing through the crypto news from this week and I saw on multiple news outlets that Japan will tax crypto investors up to whopping 55%. I have read something about it in January, but wasn't really sure if it is real or fake and didn't bother to investigate as I don't reside in Japan. After a quick check it turns out that the ruling was announced on 1. of December, 2017 and crypto income will be reviewed as “miscellaneous income,” which includes any gains from sales, trading, purchasing goods with cryptocurrencies, mining, and network forks.
Crypto Gains Will Be Taxed Almost 3 Times Higher Than Stock Market Gains
The taxes for cryptocurrencies are appreciably higher than stocks or buying foreign securities. Those assets are taxed at 20 percent. Although the top bracket (55%) applies for earnings over 40 million yen ($365,000) in a year, it is still 35% more if the same amount of money was to be earned from the stock market. On the "bright" side
for those who have an income of ¥200,000 ($1,838) or less by selling virtual currency, provided there is no other income
Japan is not the only country to focus on Crypto Taxation. Italy, Germany and France have pledged to discuss crypto taxation and crypto regulation on the G20 summit in the middle of march.
The US already considers bitcoin and treats it as "property", the thing is that nobody really declares their crypto holdings to the IRS and Uncle Sam surely wants his cut, so we might see a tightening in the US in the near future.
How Does Your Country Tax Crypto Assets ?
Taxation has always been a tricky subject when investing and manufacturing (mining) is involved. In this new field (crypto taxation) I think there is a lot of room for maneuvering, especially if you have good experts on your side. So I would definitely recommend multiple consultations or even better - if you know a rich crypto investors, you should definitely ask him for advice.
Please share with us in the comments about your experience with taxes and crypto (if you have any). Thank you for reading !
My country India doesnt consider crypto valid currency. So there is no taxation on it.
But we can expect india to impose taxation future , because banning of crypto is impossible. The only way yo create income for a nation from crypto is taxation.
Yes, governments would like to get their hands on crypto wealth.
The other thing gov. can do is to launch the national cryptocurrency, and make it legalize and make whole new structure of taxation on it.
Yes, they are already trying to do this, but it goes against the whole idea of decentralization.
Yes thats true, it will be against the idea of decentralization. Then gov. will manipulate the crypto, the same way they have been manipulating the fiat and stocks.
Wow that sucks Japanese are going to be true hodlers until they get a fortune and move countries
Yes, there are already people, who left Japan for other countries. 55% is extremely high.
55% tax is ridiculous people will find a way around it. All this is doing is taking away profits and giving the banks power
Banks and governemnts. 55% is truly absurd...
55% tax is enormous. But we all know how much governments love us. :)
VERY MUCH :D
Wow 55% is a huge cut. I was thinking to move to Japan and just be a trader.
I guess you just should cash out somewhere else then.
It really comes to where you reside I guess.
True that. I guess we all should move to Puerto Rico. I heard it's crypto friendly but then again with media this days can't be really certain.
I guess there is a good reason for puerto rico to be tax exempt in general. They also dont owe federal, local or muni tax - triple exempt :)
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STOPI think that it would be very critical plan to crash cryptos also crypto enthusiasts. India may be follow this way in future. upvoted and resteemed.
I don't understand
I mean Japan has planned to restrict the future of growing cryptocurrencies