[ad_1]
The Japan Crypto-Asset Business Association (JCBA) and the Japan Crypto-Asset Exchange Association (JVCEA) have published a tax reform request for 2023. The request calls for separate taxation of cryptocurrencies at a rate of 20%, among other things.
The Japan Crypto-Asset Business Association (JCBA) and the Japan Crypto-Asset Exchange Association (JVCEA) jointly issued a tax reform request for crypto assets. The 2023 Tax Reform Request addresses several issues that both groups see as an obstacle to the industry’s growth.
These issues include the need to facilitate tax returns, lack of consistency within the system, comparison with crypto asset taxation systems abroad, and the importance of crypto assets in Japan’s web3 strategy. The latter appeared to be a key point in the tax reform demand, with Gaku Saito, Chairman of the Tax System Study Group, saying:
“If the Japanese government makes Web 3.0 a national strategy, the frequency with which the public will come into contact with crypto assets will inevitably increase dramatically… its easier maintenance will lead to the spread of Web 3.0 and help the market grow .”
Request requires separate taxation of cryptocurrencies at a rate of 20%, with a loss carryforward of the amount of income related to crypto assets for three years from the following year. This will also apply to derivatives trading.
Let the industry flourish
Cryptocurrency advocacy groups in Japan have been working hard lately to ensure that the crypto industry can flourish. These groups recently called on the government to loosen business tax regulations, fearing it would lead to a flight of talent. The groups also want to cut the current tax rate for individual investors from 55% to 30%.
Existing financial institutions are also starting to consider crypto. In July 2022, it was revealed that Japanese trust banks could be given the green light to hold cryptocurrencies as the FSA aims to strengthen investor protection by deregulating trust banks.
The crypto tax is being considered everywhere
Many countries are wondering how to deal with the issue of taxation of the crypto asset class. Notably, South Korea has again delayed its crypto tax plans, pushing them back to 2025. Other countries such as India have imposed harsh tax rules that have caused trading volumes to drop.
Investors will have to deal with cryptocurrency taxation sooner or later as the asset class becomes more widely adopted. This together with general regulation will bring some difficulties in the short term, but will legitimize the market.
Denial of responsibility
All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.
[ad_2]
Source link
