Japan Eliminates Bitcoin Taxes, High In Volume Is Expected

Japan's tax reform law that officially eliminated the consumption tax on the bitcoin trade came into effect on July 1. The bitcoin trading activities are expected to increase in Japan after the new rules.

In a report titled Japan: Inbound Tax Alert, 2017 Tax Reform Propositions, Deloitte revealed that digital coins including bitcoin would be exempt from excise duty of 8 percent in Japan.

Translated part of the Deloitte report says:

The supply of digital coins will be exempt from Japanese consumption tax ("JCT"). Currently, digital coins such as bitcoin do not fall into the category of exempt sales, and as a result, the sale of the currencies in Japan was treated as taxable for purposes of the JCT. Following the enactment of the amended settlement law in May 2016, which defined "digital coins" as a means of payment, the sale of digital coins as defined in the new fund settlement law would be exempt from the JCT. This change will apply to sales / purchases transactions made in Japan after July 1, 2017.

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