Japanese crypto currency exchange will inform the tax authorities about the most successful traders
The Japanese authorities are preparing a new surprise criptonita. The proposed model of interaction of kryptomere with the tax authorities provides for the mandatory notification of tax authorities about traders concluded deals in excess of a certain threshold.
However, while we are talking about the plans of the ruling coalition expects that the tax changes will come into effect in 2019 and will come into force from 2020 fiscal year. It is assumed that the crypto currency exchange and other intermediaries to provide to the tax authorities data about customers, earned on the cryptocurrency transactions of 10 million yen (about $89 million).
The initiative is due to the need to combat tax evasion — the authorities underline that it is not all completely the traders and the transactions, and only those who exceeded a certain threshold. The tax will enter data on the volume of transactions concluded by clients as well as their names, addresses and identification numbers.
Current legislation does not require the crypto currency exchange and other companies acting as intermediaries in the process of purchase and sale of cryptocurrencies to provide such information. In such cases, they are free to dispose of customer data at their discretion, even if they are requested by the IRS.
Under Japan law, operations cryptocurrency and incomes from them are under “other income” and taxed on a progressive scale with a top bracket of 55%. Earlier it was reported that the authorities plan to allocate revenues from cryptotrading in a separate article of incomes and to impose their tax at the rate of 20.3% as well as operations with securities.
According to Japanese tax, 549 among Japanese citizens whose income under “other income” in 2017 exceeded 100 million yen (approximately $900 thousand), transactions with cryptocurrencies was involved in more than 60%.