TOKYO, Dekmin - Japan's National Tax Authority imposed a tax with a surprising amount for investors of virtual currency. During the period February 16-March 15, 2018, investors must declare their tax profits and tax reports.
As reported by Bloomberg on Friday (9/2/2018), unlike stocks and foreign exchange taxes of about 20 percent, Japan imposes taxes on profits from virtual currency of between 15-55 percent.
The largest tax rate applies to taxpayers with an annual income of 40 million yen or 365,000 US dollars, equivalent to about Rp 4.9 billion.
"Without taxes for long-term investments in virtual currencies in some countries including Singapore, a number of wealthy investors because the virtual currency has left Japan," said Shiodome Partners Tax Corp. CEO Kengo Maekawa.
According to her, her company handles many average clients aged 30-40 yearly who ask for tax advice on earnings of virtual currency. Japan is not the only country that imposes a tax on virtual currency.
In the US, in 2014, virtual currencies are set up as treasures like gold or real estate. Thus, the long-term earnings of the virtual currency will be taxed, though not as high as in Japan.
The potential of Japanese government tax revenues is very large. Within a few months, about 40 percent of bitcoin trade worldwide was conducted against the yen.
The government tax agency also created a database of virtual currency investors. In addition, teams stationed in Tokyo and Osaka are tasked with overseeing and monitoring the electronic commerce of virtual currency.