The Committee of experts on tax issues in Japan urged to simplify the registration process of tax collection in the country.
According to regulators, this process is very complex and needs to change. According to the Japanese news publication Sankei earlier this week the Committee met to discuss a proposal to change the existing system of registration taxes for cryptocurrency.
The Committee sees the main problem is that the calculation of the cryptocurrency profit for taxation purposes is complex, and this reduces the desire of the owners of digital assets to reveal their cryptocurrency savings when filing tax returns.
So, cryptocurrency in Japan are taxed not just on profits but also on profits when converting from one digital asset to another. Other difficulties associated with the lack of a single source of price data. On your way to finding the solution group indicated that it intends to hold a series of meetings, which will discuss the views of various stakeholders.
As previously reported, cryptocurrency investors in Japan face tax rates on cryptocurrency transactions in the amount of from 15% to 55%, the level of which varies depending on the source of income.
According to the tax Committee, simplification of the process of filing a tax return, including information about cryptocurrencies, will help people to stop evading taxes. For example, in a report published earlier this year, it was said that out of 549 persons who have registered a profit of $1 million in 2017, about 331 investors were in Cryptoprotected.
331 Japanese Cryptocurrency Investors Made at Least $1 Million in Profit Last Year: Tax Agency //t.co/Th4sjqOPgz
— GigaɃitcoin (@GigaBitcoin) May 29, 2018
The tax evasion
It is suspected that many citizens evade paying taxes on your crypto investment, especially given the fact that Japan is not only the third largest economy in the world, but the leading power in the use, awareness and adoption of cryptocurrency.
“Given the rapid growth of the cryptocurrency sector at the end of 2017, the number 331 is simply too small to be true. A large part of the crypto investors probably did not declare their income to the government,” said one analyst.