The Japanese National Tax Agency had already ruled "last year" that capital profits on transactions of digital currency are considered "miscellaneous income," Bloomberg writes.
The taxation on cryptocurrency profits is higher than the around 20 percent tax levied on profits from stocks and foreign currencies, with the greater percentage taxation applying to those who earn greater than 40 mln yen a year (about $367,600).
In comparison, South Korea had declared in Jan. which crypto exchanges will be taxed 24.2 per cent, in line with the existing tax policy for corporations.
Based on Bloomberg, around 40 percent of Bitcoin (BTC) trading recently has been against the yen, meaning the nation will be given a massive revenue from taxing crypto.
Bloomberg reports that the National Tax Agency is creating a database of teams that are keeping, as well as cryptocurrency investors, possibly to ensure enforcement of the tax laws in Tokyo and Osaka to observe trading.
The US Internal Revenue Service (IRS) also reported now that they had created a ten-person team of researchers directed at tracking down crypto consumers that failed to report their profits in their tax declarations.
Japan had recognized Bitcoin as a lawful means of payment back in April 2017, a step towards helping the authorities prevent unregulated trades from hacks and mismanagement such as the Mt. Gox meltdown in 2014.
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