Japanese cryptocurrency traders must pay taxes
It seems that the Japanese government has paid attention to tax evasion by cryptocurrency traders and is going to develop a system to combat tax evasion.
The Japanese edition of Mainichi, reports that the National Tax Agency of Japan (NTA) plans to obtain the authority to request information about customers of cryptocurrency exchanges that are suspected of tax evasion. It is expected that NTA may receive the appropriate authority during the fiscal reform of the 2019 fiscal year, that is, they will earn in 2020.
Note that at the moment, cryptocurrency earnings of traders in Japan are estimated as “other incomes”. If a person is engaged in a normal job but has received an annual profit from trading in cryptocurrencies exceeding 200 thousand yen ($ 1,800 at the current exchange rate), then he is obliged to declare his income.
At the same time, a sufficient number of traders made a significant profit during the 2017 bull market. So, according to NTA, in 2017, more than 300 Japanese declared a profit from trading in digital assets in the amount of more than 100 ($ 900,000) million yen.
At this point, the regulator may ask the cryptocurrency exchange on a voluntary basis to provide information about its customers. But after the tax reform, the NTA will be able to request data such as names, addresses, and 12-digit citizen identification numbers.
However, the Japanese government plans to limit the authority of the tax collectors - it will be able to request data on users who received incomes in the amount of more than 10 million yen, and the regulator must confirm that this citizen hid at least half of his income. In addition, the exchange will be able to challenge the relevant request.
It is also reported that amendments to the tax system will affect companies operating in the so-called “joint economy”, for example, flea market operators. NTA will also be able to request information on bank accounts of users suspected of tax evasion.
Note that recently the Minister of Economy and Finance of South Korea Hong Nam-Ki announced the introduction of a special tax for cryptocurrency traders.