By the end of 2017, NTA reported that 21.98 million in Japan declared taxes to the government that generated more than 41.4 billion yen, as CCN writes in an article on the subject.
According to NTA that was cited by CCN, the amount of taxes has increased by more than 3 percent from 2016, probably due to the improvement in Japan`s economy.
What is striking about this is that 549 individuals out of 21.98 million individuals in total recorded a non-operational or non-working profit of $1 million that is reportedly often generated by investments into stocks, assets, commodities, and properties.
As CCN made clear:
“Out of the 549 individuals, 331 were cryptocurrency investors that made well over a million dollars in profit in the Japanese cryptocurrency market.”
However, what the Japanese authorities wanted to do is taxing these activities. In 2017, the Japanese government, Financial Services Agency (FSA), and NTA announced that local monetary authorities would tax up to 55 percent on non-operational profit generated investments. This February, Bloomberg reported that the Japanese government reportedly hinted that it intends to tax up to 55 percent on cryptocurrency investments.
Still, it is fair to say that the Japanese government did not clarify its policy on cryptocurrency taxes and investors admitted their lack of confidence in the cryptocurrency market. The fear is that they may have done anything in the wrong way since the government hasn`t clarified details, as the blockchain technology consultant Hiroyuki Komiya said in a quote published by CCN.
But that`s not all. It is not only Japan that is planning to introduce taxes to cryptocurrency investors. It is speculated that South Korea will also demand cryptocurrency investors declare their earnings to the government.
It is worth watching what is about to happen since these two countries are among the leading cryptocurrency and financial technology hubs.
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