Lub koom haum ua se Nyiv lub National kav tsaib no peev nreg rau cryptocurrency trades yog ib hom “lwm yam nyiaj tau los,” investors are now required to declare their profits in annual tax filings due Feb. 16-March 15.
Unlike winnings on stocks and foreign currencies, which are taxed around 20 percent, Japan’s levy on profits from virtual money runs from 15 percent to 55 percent. The top amount applies to people with annual earnings of 40 million yen ($365,000).
With no capital gains tax on long-term investments in virtual money in some jurisdictions including Singapore, a handful of cryptocurrency-rich investors have already left Japan, said Kengo Maekawa, chief executive of Shiodome Partners Tax Corp.
The revenue-raising potential for the Japanese government could be significant. In recent months about 40 percent of all trading in Bitcoin has been against the yen.
In the meantime, the tax agency is creating a data base on cryptocurrency investors and teams based in Tokyo and Osaka are maintaining a close watch electronic trading.
Sau: Sara Bauer