6th September,2024, Wyoming
Japan’s Financial Services Agency (FSA) is interested in the VAT or value-added tax that was proposed in a flat 20% taxation on any gains made from cryptocurrencies like Bitcoin similar to the application of the taxes on share profits. At the moment, crypto profits and gains are subjected to tax rates ranging from 15% to 55% with the additional 35% for every ¥200,000 ($1,377) of profits made. Some of the criticism has already prompted debate over reforms as many blames the present system for reducing the motivation to invest.
The proposal presented by the FSA intends to regulate cryptocurrency in the same way as an ordinary financial instrument which will be beneficial for the holders of cryptocurrencies. This is backed by the Japan Blockchain Association, who stressed that reductions in taxes would further the growth of investment in the sector.
If adopted by the Japanese parliament then new taxation structure might come into force from the year 2025 and would come as a great tax exemptions for both the personal users and companies with bitcoin exposure.
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