Published on June 26th, 2018 | by bitcoin0
Japan wants to remove its progressive crypto tax rate
However, the country’s Deputy Prime Minister, Taro Aso, wants to change how crypto transactions are taxed, from a progressive rate to a uniform rate.
Accounting software company Freee described, “Miscellaneous income is subject to comprehensive taxation, and the tax rate is decided according to the amount combined with other income such as salary income.”
The National Tax Agency (NTA) explained that Japan has seven income tax brackets, with the tax rates ranging from 5% to 45% based on earnings.
On top of the progressive tax rates, inhabitant taxes are levied in Japan by prefectural and municipal governments at the rate of 10%.
Moving to Uniform Tax Rate
The Deputy Prime Minister’s proposal would enable crypto profits to be taxed at a uniform rate, the same presently enjoyed by stock traders.
“From the viewpoint of the international nature of virtual currency uncertainty and tax fairness, etc,” Reuters quoted him expressing that it is doubtful “public understanding can be obtained” for the tax rate “equal to a uniform rate of 20%.”
How do you think Japan should tax crypto profits?