A new crypto tax system is ready to be implemented by the Japanese government to stop cryptocurrency tax evaders, this new crypto tax system is believed to put an end to everyone who is making a huge profit from cryptocurrency without paying tax. National Tax Agency (NTA) will get hold of all the crypto transactions from the exchanges and the suspected tax evaders will be monitored and their crypto earnings will be under close observation. Crypto tax evaders can expect a long letter from the authority.
New Tax System
The tax system will hit the streets from the upcoming financial year, April 1st -31st March. Earnings from cryptocurrency have been listed under miscellaneous income by the government earlier that actually comes under the roof of the Income Tax Act. It is mandatory for individuals with the minimum income of 200,000 yen per annum to disclose the details to authority and it will be considered as income.
All the Cryptocurrency exchanges operating in the country have to share their customer information, customer name, address, and the 12 digits personal identification number will come under the sharing list. The present year was not so good for the crypto market, the crumbling prices in the market didn’t allow users to attain profit, but in the year 2017 citizens of Japan made over 100 million yen from the market, according to the data published by NTA.
During the initial stages of the law, only individuals who have earned at least 10 million yen through crypto transactions must reveal their details that too only if the authority suspects the disclosing details of the individual. Individual below the 10 million yen mark is standing on the safe peak, well for now.
Japan has been stepping up the regulatory game for quite some time now. Japanese Financial Services Agency (FSI) confirmed its self-regulatory status and this will provide the industry leaders to formulate rules that can safeguard digital assets and also prevent all the illegal activities.