[ad_1]
A Japanese legislator has proposed a series of changes to the current tax regime in order to lighten the burden on cryptocurrency users and encourage the adoption of cryptocurrencies in the country.
At a meeting held earlier this month, Takeshi Fujimaki, a representative of the political party Nippon Ishin, He said that the country's tax system should not "crush the future" of digital currencies and blockchain technology and recommended four amendments "to promote [spread] of virtual currency in society ".
First, Takeshi suggested that there should be a 20 percent tax rate on the encrypted gains rather than the current up to 55 percent because the gains from the cryptocurrency negotiations are not as stable as wage income. they are liable to incur losses. As a result, encrypted earnings should be taxed on par with other investment options in the country, such as equities and mutual funds, he said.
Secondly, the legislator recommended that it be allowed to carry out cryptocurrency losses in order to have a "fair" system.
Currently, if you make a loss in one year and you earn the next one from cryptos, you still need to pay taxes on earnings made in the second year without any deduction for the previous loss. However, in the case of other types of investment, such as shares and property, said Takeshi, taxpayers can deduct losses from total profit and pay the difference tax.
In his third point, the politician said that there should be a tax exemption for trade between two virtual currencies. For example, currently when you trade between, for example bitcoins and XRPs, you have to pay taxes if you make money.
"In order to increase the volume of transactions between virtual currencies and revitalize the market for virtual currencies, trading between virtual currencies should be tax free," said Takeshi, adding that the calculation of gains or losses for such transactions is complex and " extremely cumbersome "".
Finally, he said that to increase the small payments in virtual currencies, there should also be a tax exemption in that area. For example, currently, when a person pays in a restaurant with bitcoins, he should pay taxes on the profit in conversation from fiat to cripto, if any.
However, this could hinder the use of payment cryptos, Takeshi said, saying:
"If you do it all that way, you can not hope for a penetration of the virtual money system in the real society." The small amount of virtual currency settlements should be tax-free and virtual money regulation in the real world should be extended. "
This is not the first time that Takeshi has raised the issue of encrypted taxation. In June, he suggested changing Japan's tax policy on the profits of cryptocurrency from its current "mixed income" classification to "distinct declared taxation". However, the Japanese deputy rejected this suggestion at the time, indicating that it was "doubtful" that the general public would understand such a change.
In October, the country's Tax Commission was also looking for ways to simplify the current cryptocurrency tax filing system in order to ensure that investors accurately report their earnings.
Image of the yen and bitcoin via Shutterstock
[ad_2]Source link
