Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: ABCbits on September 09, 2024, 02:04:35 PM
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Japan Considers Lowering Crypto Tax Rate to Unified 20% from Current 55%
Currently, Japan taxes cryptocurrency earnings under a miscellaneous income category.
Japan is considering a change to its crypto tax code, potentially lowering it to align with other financial assets.
The country’s financial regulator, the Financial Services Agency (FSA), has recently proposed a reform that could lower the tax rate on crypto profits to a flat 20%... Read more here (https://cryptonews.com/news/japan-considers-lowering-cryptocurrency-tax-rate-to-unified-20-from-current-55/).
Few months ago, it's known that Japan Blockchain Association (JBA) made petition to reduce tax which discussed here (https://www.altcoinstalks.com/index.php?topic=322936.0). And to be clear, cryptocurrency tax in Japan is up to 55% depending on how much someone earn. Your opinion is greatly appreciated.
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I was wondering where the additional 10% is coming from since Japan only has 5% to 45% tax on miscellaneous income. I didn't know they have inhabitant taxes too. Anyway, the proposed 20% flat rate would benefit larger traders more than the minors/casuals. Currently, the latter are excused from paying taxes if their trading profit is less than 200K JPY.
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These tax rates still seem too high to me. I haven't read the details of the news, but if I am exposed to these tax rates, I will become an anarchist in two days... :) Through this news, we understand that the relationship between decentralized systems and authorities is not always good. This will push us to trade in illegal ways from time to time. I don't think we owe anything to anyone except the commission paid to the stock exchange and the tax on that commission... :)
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These tax rates still seem too high to me.
What are the rates in your country for personal income tax and capital gains? Other than the 10% additional tax as I said above, I think the rates currently imposed by Japan and the proposal is almost similar to a lot of countries
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These tax rates still seem too high to me. I haven't read the details of the news, but if I am exposed to these tax rates, I will become an anarchist in two days... :) Through this news, we understand that the relationship between decentralized systems and authorities is not always good. This will push us to trade in illegal ways from time to time. I don't think we owe anything to anyone except the commission paid to the stock exchange and the tax on that commission... :)
Well, I’m also surprised by the 55% figure. That means if a crypto investor makes a $100K profit, they have to pay the government $55K, which is more than half of what they worked hard to earn through a lot of effort and time. Perhaps this tax revenue isn’t being used effectively to promote the development of crypto in this market because Japan is no longer considered a strong crypto market like it was in 2017.
At least the “greed” of the Japanese government has decreased, and perhaps 20% is a more appropriate tax rate. Personally, I hope that when my country’s government accepts crypto, the tax will be only about 0.1% as for stocks.
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Perhaps it just shows how expensive to live in Japan to begin with, 55% income tax from just crypto alone? So it make sense for them to lower it to 20%, here in our country it's about 30%, so it's within the range.
And I guess it boils down on how much money you make before you can get on the 55% tax range.
But It's good if they are going to simply it, and will put a unified 20% across to ease crypto tax.
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55% for crypto tax is very high and it seems like it will make me poor if I live in Japan and trade crypto. I have something that I would probably avoid if I lived in Japan, which is trading crypto. Logically, if I have 1 Bitcoin that is converted to YEN and withdrawn to my personal account, then the net amount received to the account is only 0.45 BTC. This is really crazy in my opinion.
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These tax rates still seem too high to me. I haven't read the details of the news, but if I am exposed to these tax rates, I will become an anarchist in two days... :) Through this news, we understand that the relationship between decentralized systems and authorities is not always good. This will push us to trade in illegal ways from time to time. I don't think we owe anything to anyone except the commission paid to the stock exchange and the tax on that commission... :)
As we know it, the government is doing all it can to extract money from the people in many ways than one...and here in cryptocurrency the government of Japan seemed to be unsure on what to do before and maybe right now they realized that they are actually burdening the many players who are doing the trading and investing. In countries where the government is on the top of many industries, people have no choice but to report and pay the taxes according to the approved rates. I am then glad that here in my country, we are still free to report or not to report. And you are right, sometimes it is good to think to defy the government but then we really don't know how powerful the government is on their locations. Still, this news is a good one but if they can lower more then it can be a celebration.
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20% is still to much for anyone who is also paying for rent and feeding their kids. All I know is that the country has a high cost of living and and tax law like this makes the life uncomfortable.
They can only hope for more crypto adoption that their government be satisifed to reconsider lowering again.
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I was wondering where the additional 10% is coming from since Japan only has 5% to 45% tax on miscellaneous income.
Looking at one of guide i found[1], the additional 10% refers to Municipal tax which always added, no matter how much you earn.
20% is still to much for anyone who is also paying for rent and feeding their kids.
But at least it's not much higher than tax for other form of currency or investment in Japan. The only concern with this consideration is people with low income would pay from 15% tax[1] to 20%.
[1] https://koinly.io/guides/crypto-tax-japan/
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I was wondering where the additional 10% is coming from since Japan only has 5% to 45% tax on miscellaneous income.
Looking at one of guide i found[1], the additional 10% refers to Municipal tax which always added, no matter how much you earn.
20% is still to much for anyone who is also paying for rent and feeding their kids.
But at least it's not much higher than tax for other form of currency or investment in Japan. The only concern with this consideration is people with low income would pay from 15% tax[1] to 20%.
[1] https://koinly.io/guides/crypto-tax-japan/
That means it's not just cryptocurrency in Japan that has a tax of more than 20%, I think if I lived in Japan I would feel very uncomfortable seeing such a huge tax.
For example, I have a job like buying and selling used cars, with a profit of around 10-20% but if you look at the tax in Japan it is 20% then my profit is only to pay the tax, oh my god this is too unreasonable for me to do business in Japan.
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Although the 20% tax on cryptocurrencies is still high, it is much better than 55%. I wonder why Japan imposes such a high tax on this sector? This high tax will make many resort to tax evasion or fraud to get rid of taxes.
Reducing the tax on cryptocurrencies from 55% to 20% is a great achievement for Japan if such a law is passed, as it will encourage individuals and institutions working in crypto in Japan and will prevent many cases of tax evasion due to the high tax.
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Although the 20% tax on cryptocurrencies is still high, it is much better than 55%. I wonder why Japan imposes such a high tax on this sector? This high tax will make many resort to tax evasion or fraud to get rid of taxes.
I've seen some member speculate it's soft ban approach, to discourage people from investing/owning cryptocurrency without banning it.
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Personally, I hope that when my country’s government accepts crypto, the tax will be only about 0.1% as for stocks.
You only have 0.1% tax for stocks? Whjere are you from, Dubai or something like that? :)
Having said that, my country (Croatia) deals with crypto tax in the same way they deal with stock tax meaning 10% which is actually quite good when compared to majorify of other countries, and you can even avoid paying tax alltogether if you hold crypto for 2+ years.
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In other words, if the law is passed, Japan will move from a voluntary ban on cryptocurrencies to accepting them, as 20%, although expensive, is still much less than 55% and may achieve profits in the bull market.
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Although the 20% tax on cryptocurrencies is still high, it is much better than 55%. I wonder why Japan imposes such a high tax on this sector? This high tax will make many resort to tax evasion or fraud to get rid of taxes.
I've seen some member speculate it's soft ban approach, to discourage people from investing/owning cryptocurrency without banning it.
Yes I agree, I don't expect anyone to declare their coins and pay 55% tax to the government, meaning for example if you have 1 BTC you will pay 0.55BTC to the government while you can keep 0.45BTC for yourself!!! This is an unbelievable offer!!! :-\
So the only way is either not to own it at all or to hide from the government eyes.
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The Japanese tax authority should do more to reduce crypto tax to enhance adoptions in the region. A 20% from 50% tax cut is still much, I think the Japanese tax authority should make it 5% profit tax to encourage investors/traders and a wider adoptions, especially in their areas.
Again, high tax of 50% or even 20% has the probability of people avoiding to pay tax regularly. The more government reduces tax on cryptos, the better for the growth of the crypto economy in Japan and close by countries.
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For example, I have a job like buying and selling used cars, with a profit of around 10-20% but if you look at the tax in Japan it is 20% then my profit is only to pay the tax, oh my god this is too unreasonable for me to do business in Japan.
I think you miscounted it. I'm not an expert on Japan's tax law by any means, but if they impose a 20% tax on your activities I assume it means you need to allocate 1/5 of your profit for that. There's no way they will count your selling price to determine how much you need to pay since it will discourage people from doing business there. I don't think they are that stupid.
I agree that lowering taxes is a signal that the government considers crypto as a good market to have. I remember reading that Japanese companies also expanded their crypto business by launching their own blockchain or other crypto services a few months ago. However, I'm not sure if they do that because they see this government decision in advance or because they want to expand overseas. CMIIW.
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For example, I have a job like buying and selling used cars, with a profit of around 10-20% but if you look at the tax in Japan it is 20% then my profit is only to pay the tax, oh my god this is too unreasonable for me to do business in Japan.
I think you miscounted it. I'm not an expert on Japan's tax law by any means, but if they impose a 20% tax on your activities I assume it means you need to allocate 1/5 of your profit for that.
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Thank you for your feedback on my tax calculation. But I will also ask again, how is the calculation of the 1/5 taxed? Because I don't understand cryptocurrency tax in Japan. Is the calculation like this?
1. Capital 1 BTC, Profit 20% x 1/5 = ..... tax
2. Capital 1 BTC, profit 20% x 1/5% = ... tax
3. Or how do you calculate the tax in Japan?
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I remember reading that Japanese companies also expanded their crypto business by launching their own blockchain or other crypto services a few months ago.
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Really? What is blockchain has own for Japan companies? Can you share me about this informations from other website or blog for proof?
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Seeing that they have come to a consideration of being fair is good, because it's going to be comfortable with the cryoto enthusiast, users and investors in the country. When the tax is raise so high, it will even make some cryoto users to do all possible best just to avoid paying the tax but if it's fair enough, then many users might not really see it as a big deal.
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You only have 0.1% tax for stocks? Whjere are you from, Dubai or something like that? :)
Having said that, my country (Croatia) deals with crypto tax in the same way they deal with stock tax meaning 10% which is actually quite good when compared to majorify of other countries, and you can even avoid paying tax alltogether if you hold crypto for 2+ years.
I'm from Vietnam. Apart from transaction fees, Vietnamese stock investors only have to pay a 0.1% tax on the value of shares when selling them for fiat currency. This is very attractive and many people even want the government to treat crypto like securities so they can enjoy such low taxes.
Currently, crypto is in grey area in Vietnam: the government neither regulates nor taxes them. People can trade crypto as they please, as long as they protect themselves from scams and don't use crypto as a means of payment within the economy. Personally, I like the current 0% tax but I also want crypto to be accepted so that investing in crypto can be recognized as a legitimate profession in Vietnam.
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Although the 20% tax on cryptocurrencies is still high, it is much better than 55%. I wonder why Japan imposes such a high tax on this sector? This high tax will make many resort to tax evasion or fraud to get rid of taxes.
I've seen some member speculate it's soft ban approach, to discourage people from investing/owning cryptocurrency without banning it.
I don't think that they are discouraging their people to engage, if I'm not mistaken, Japan has been one of the most friendliest and pro-crypto country in the Asian region. And if I'm not mistaken, Bitcoin is legal to them. They have cypto exchanges as well, so if the government does not want crypto, then they could have impose a total ban.
But obviously, if countries wanted to legalized it, somehow they will have to impose tax. And probably this is one of the best use case that we here. But now it looks like they are going to ease and have soft approach to cut the tax.
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I know some people consider 20% to be high, but it is still better than the previous 55%. I think the next country that needs to look into their crypto taxation law is india, if i remember correctly, it is as high as 30% which is exorbitant in my opinion. I believe some of these countries use taxation to impose a 'soft' ban on cryptocurrencies and discourage people from using it.
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I know some people consider 20% to be high, but it is still better than the previous 55%. I think the next country that needs to look into their crypto taxation law is india, if i remember correctly, it is as high as 30% which is exorbitant in my opinion. I believe some of these countries use taxation to impose a 'soft' ban on cryptocurrencies and discourage people from using it.
I think 20% is where the median for taxes across the globe if I'm not mistaken. So Japan might just be aligning it not that they are imposing soft ban because I do not think that is the case.
And you can see the numbers and the projected numbers till 2028 here as far as crypto goes,
Revenue in the Cryptocurrencies market is projected to reach US$1,919.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.02% resulting in a projected total amount of US$2,613.00m by 2028.
The average revenue per user in the Cryptocurrencies market amounts to US$84.95 in 2024.
From a global comparison perspective it is shown that the highest revenue is reached in the United States (US$23,220.00m in 2024).
In the Cryptocurrencies market, the number of users is expected to amount to 25.93m users by 2028.
User penetration will be 18.14% in 2024 and is expected to hit 21.24% by 2028.
https://www.statista.com/outlook/dmo/fintech/digital-assets/cryptocurrencies/japan
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Few months ago, it's known that Japan Blockchain Association (JBA) made petition to reduce tax which discussed here (https://www.altcoinstalks.com/index.php?topic=322936.0). And to be clear, cryptocurrency tax in Japan is up to 55% depending on how much someone earn. Your opinion is greatly appreciated.
this is great news for traders and investors of crypto in japan 55% is high and the reduce would be hugely helpful this also means that the country might step towards more support towards crypto and can motivate more to go into trading since the high tax won’t demotivate them anymore
i reckon not only japanese people would benefit from this because it is possible that some traders might trade in japan if it meant paying a much less tax than in their own countries
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These tax rates still seem too high to me. I haven't read the details of the news, but if I am exposed to these tax rates, I will become an anarchist in two days... :) Through this news, we understand that the relationship between decentralized systems and authorities is not always good. This will push us to trade in illegal ways from time to time. I don't think we owe anything to anyone except the commission paid to the stock exchange and the tax on that commission... :)
But 55% is extremely high, it is basically wiping out more than half of your gains, which is really bad.
The new rate is at least more reasonable, I would be fine with a 20% tax but not a 55% rate.
this is great news for traders and investors of crypto in japan 55% is high and the reduce would be hugely helpful this also means that the country might step towards more support towards crypto and can motivate more to go into trading since the high tax won’t demotivate them anymore
Lower taxes do not necessarily amount to supporting crypto more in the future. they are just doing this as a policy thing. there are countries that adjust this all the time and haven't suddenly become El Salvadors.
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Few months ago, it's known that Japan Blockchain Association (JBA) made petition to reduce tax which discussed here (https://www.altcoinstalks.com/index.php?topic=322936.0). And to be clear, cryptocurrency tax in Japan is up to 55% depending on how much someone earn. Your opinion is greatly appreciated.
This is fu***ng wild. 55% tax on crypto profit? I am sure Japanese people will never admit that they have crypto currency. Even if they make it legal tender there, the crypto-related businesses won't grow there if the fu***ng government does not reduce the crypto tax. Can you imagine having a crypto-based company in Japan and you have to pay 50% tax on your profit while the government contribute nothing to your business?
This is nothing but to stop people from engaging with cryptocurrency. Even 20% Tax is too high. The max percentage of Tax I can think of is 15%, even though my country charges up to 200% tax on some products if you import it from outside the country. I am glad that Crypto currency is banned here and I am not paying a single penny to the government. But I would love to pay 15% tax if they legalize it.
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These tax rates still seem too high to me. I haven't read the details of the news, but if I am exposed to these tax rates, I will become an anarchist in two days... :) Through this news, we understand that the relationship between decentralized systems and authorities is not always good. This will push us to trade in illegal ways from time to time. I don't think we owe anything to anyone except the commission paid to the stock exchange and the tax on that commission... :)
I'm also surprised that it's too high I'm glad that we don't have this in our country. 55% is just too much; it's like they are making a living taxing you of your profit.
Well, we cannot blame the investors for not complaining, Japan is also giving a lot to its people when it comes to service, but even though the very high tax, Cryptocurrency adopting is high in Japan, the tax rate did not deter its growth.
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We know that Japan's tax system is a bit different than others. They follow the progressive Tax system. But their 55 percent tax on crypto is never justifiable. Imposing such a tax would discourage that platform. But the positive thing is that they have moved away from that position though it is late they have realized that it will be profitable not to discourage but to encourage and bring these spots to a larger scale and receive taxes
How to pay for taxes in Japanese currency. (https://wise.com/us/blog/income-tax-in-japan)
(https://i.ibb.co.com/6w3mnxm/11111.jpg) (https://ibb.co.com/1QDLv5L)
Currently Japan has tried to reduce the TAX amount from 55% to 20% of course this is good imitative and the more crypto investors they facilitate the more they can benefit from the industry. Taxes are assigned to different categories considering different factors of investment in different countries.
(https://iworld.com/en/blog/taxes-cryptocurrency)
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We know that Japan's tax system is a bit different than others. They follow the progressive Tax system. But their 55 percent tax on crypto is never justifiable. Imposing such a tax would discourage that platform. But the positive thing is that they have moved away from that position though it is late they have realized that it will be profitable not to discourage but to encourage and bring these spots to a larger scale and receive taxes
Currently Japan has tried to reduce the TAX amount from 55% to 20% of course this is good imitative and the more crypto investors they facilitate the more they can benefit from the industry. Taxes are assigned to different categories considering different factors of investment in different countries.
(https://iworld.com/en/blog/taxes-cryptocurrency)
Thank you for the detailed information about the tax rates for crypto investors in Japan. I only see the greed of the Japanese government; they want to take a huge portion of the profits while doing nothing concrete to promote the development of the domestic crypto market.
Additionally, I have a feeling they are also afraid of crypto as JPY value has depreciated significantly over the past year. High taxes are sometimes not for increasing the budget but to limit investor participation and stifle market growth.
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even though the government has lowered the tax rate to 20% from 55%, it is still very high I think, this makes traders object to this tax rate. but the government may have a purpose in setting this and I also don't really understand this problem l, it's just that this is my opinion from my point of view.
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Few months ago, it's known that Japan Blockchain Association (JBA) made petition to reduce tax which discussed here (https://www.altcoinstalks.com/index.php?topic=322936.0). And to be clear, cryptocurrency tax in Japan is up to 55% depending on how much someone earn. Your opinion is greatly appreciated.
I am quite late to respond on this topic, but really it's a good thing that they reduced the tax. I mean,, 55% was too much. giving half of what you earn to the government will motivate the citizens to adopt anonymous ways to make investments. I don't know what's the method for them to not get caught but 20% seems to be high as well but in compared to 55% it's acceptable.
I say there should not be any type of tax on crypto, especially since crypto is not their currency, as if we are talking about BTC, then it's independent money, and the government should not have to take a reward on our investments like BTC.
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I say there should not be any type of tax on crypto, especially since crypto is not their currency, as if we are talking about BTC, then it's independent money, and the government should not have to take a reward on our investments like BTC.
At least it is allowed to operate legally using cryptocurrency, and 20% is better than not being allowed at all by the government... but 55% is inhumane, because I am used to 10%-15% tax in my country, while for cryptocurrency tax is only charged 1% of the total transaction.
Maybe lowering taxes can stimulate crypto activists from the cherry blossom country to be more active in developing the cryptocurrency economy.
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At least it is allowed to operate legally using cryptocurrency, and 20% is better than not being allowed at all by the government... but 55% is inhumane, because I am used to 10%-15% tax in my country, while for cryptocurrency tax is only charged 1% of the total transaction.
Maybe lowering taxes can stimulate crypto activists from the cherry blossom country to be more active in developing the cryptocurrency economy.
I agree with you that a 20% tax is much better than not being allowed, but 55% is not better than not being allowed. Because in our country the government has now allowed us to perform trading, when we will get scammed we won't be getting any help from crypto, but still, many of the people are into crypto and making a living from it.
The point is the government should take advantage of such a situation and impose a small tax so they could generate some revenue as well. You are right in the last line as well as lowering taxes will motivate people to pay tax and they won't seek alternative ways to minimize it.