Japanese Taxation Committee Looks To Simplify Cryptocurrency Tax Reporting

It was reported by a daily news outlet, Sankei new that a Japanese taxation policy committee had a debate with an intention of simplifying cryptocurrency tax.

Featuring the complicated tax filing regime presently in place for Japanese nationals, authorities from the committee that advises the government on policy said they have to change the process to stimulate a more transparent reporting of cryptocurrency profits.

“The environment should be adjusted so that tax returns can be simplified,” Sankei quotes the company as saying.

Japan has sought to future-proof its economy with policy regulations associated with cryptocurrency which emerged as companies benefited from complementary regulations.

Taxation obligations which are quite complicated are also stringent with customers required to file a tax return on any yearly gains over 200,000 yen ($1780), Sankei notes.

US officials cautioned them while analyzing the reports. The number of clients who file crypto returns is not much while those who do it is even lower.

The US has seen dedicated tools shown to aid investors file tax returns particularly geared to the nations tax officials, the Internal Revenue Service (IRS). On the other hand, Japan lacks a similar easily accessible mechanism.

The authorities said that soon, the simplified regime should enable an easy calculation of cryptocurrency holdings when it comes to some phenomena like inheritance and donation tax.

They included that the system should “be able to grasp the asset price appropriately,”