The crypto community in Japan may be enroute a systemic revamp that is targeted at making things easier for crypto investors. According to the National Tax Agency(NTA) of Japan, the plan here is to reform the procedures of tax paying for cryptocurrency investors. This reform has been endowed after having set “simplification” as its primary guideline.
The brisk unveiling of these reforms might not have surprised everyone since talks about them have been open to question for a sufficiently long time. Especially after Finance Minister of Japan, Taro Aso has made indications of there being some upcoming tax reforms in a speech delivered in June, 2018. It has also been established that revenue in terms of cryptocurrency will continue to be acknowledged as “miscellaneous income”.
What’s interesting to note here is that even though it had been established earlier that the NTA shall revamp the ways in which crypto investors file their returns, recent developments seize this line of thought. Media sources reveal that the National Tax Agency of Japan made consultations with Japan’s regulatory financial agency, the Japan Blockchain Association regarding their proposed methodology.
Apparently, the Japan Blockchain Association is using a software that can automatically evaluate revenue and losses. The NTA is claiming that this new software provides a more efficient and quicker solutions for filing taxes, besides saving frivolous paperwork. They further claim that this will mitigate the pains of technical organisations that are dealing in cryptocurrency.
To the aid of small-scale investors, the announcement also made clear that only organisations whose cryptocurrency-related revenues exceed 200,000 yen between Jan 18’ and Dec 18’ qualify to pay and file tax returns. Explaining this, the NTA clarified that this is done keeping in mind the aim of ‘easing the burden’ of fintech enterprises within the crypto community.