A Japanese taxation policy committee recently had a discussion with the point of making the cryptocurrency tax reporting easier. The news were officially reported on Wednesday, Oct. 17, 2018 by Sankei News reports.
Thinking about the complicated tax filling laws for Japanese residents, authorities from the committee declared there was a need to modify the strategy to create an easier way of reporting the cryptocurrency earnings.
“The environment should be adjusted so that tax returns can be simplified,”
Tax assessment commitments, while complex, are additionally requiring consumers to fill our a tax return if the annual gains of a person exceed 200,000 yen (~$1800), Sankei Reported.
As U.S. experts beforehand cautioned while inspecting their own tax payers, the quantity of investors who report crypto returns is extremely low, while the ones that are completing the taxes correctly are almost nonexistent.
The U.S. has since seen special taxation tools from Coinbase or private accountants – such as bitcoin.tax – that ease the work of the investors by teaching them how to properly complete their taxes according to the tax authority from their country.
In the press conference after the general meeting, Nakazato – the president of the taxation bureau in Japan declared:
“Since it is necessary to take into consideration the framework, other than the taxation system and business practices as well, we should hold a small number of expert meetings and deepen discussions while listening to opinions from outside,”
Since investing in cryptocurrency is a growing phenomenon in Japan and other Asian countries, it’s nice to see that certain tax regulators are doing what they can to make the taxation process easier. Now, the only question that people probably have in their mind is if other countries will follow Japan’s model and make the tax filing on cryptocurrency gains easier or they will keep it the same.
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