Tokyo To Tighten Taxation Of Profits From Cryptocurrencies
The Tokyo government intends to start a struggle against residents who evade paying taxes on profits from the cryptocurrency trade, the local newspaper Mainichi Shimbun reports.
The new government system will allow the National Tax Agency (NTA) to receive information about transactions from intermediaries, such as crypto exchanges. NTA may request personal data of taxpayers, including names, addresses, and 12-digit individual identification numbers.
The authorities are aimed at developing a new tax system at the end of 2019, to introduce it before the beginning of the 2020 fiscal year. NTA will only request data on the residents whose earnings from the sale of cryptocurrencies exceed 10 million Japanese yen (about $88,700), most likely, for reasons of maintaining the confidentiality of personal information.
Under the current legislation, crypto exchanges and organizations-intermediaries in the field of cryptocurrency payments have the right to refuse to provide information about its customers. In the case of the new tax laws introduction, crypto companies will retain the right to appeal against requests for sharing personal data.
In a recent NTA survey, more than 300 people admitted that they had earned at least 100 million yen from cryptocurrency transactions in 2017. The Agency specialists attribute this to a sharp jump in the cost of cryptos in the market in 2017 when the price of bitcoin exceeded $20,000.
Earlier this October, the Japanese Tax Policy Committee held a discussion on the simplification of the regime for filing tax returns for the citizens. After that, the officials said they want to establish more detailed reporting on cryptocurrency assets.
At the same time, the Financial Services Authority (FSA), announced its intention to introduce stricter rules aimed at regulating ICO campaigns to prevent fraud.