TOKYO: Japan’s cryptocurrency traders are bracing for the oncoming Japanese tax season, which runs from February 16th until March 15.
In Japan, all cryptocurrency earnings are required to be reported as ‘miscellaneous income’, incurring capital gains taxation of between 15% and 55% due to virtual currencies being legally classified as ‘property’.
Some traders have criticized the income brackets chosen by the National Tax Agency, with the top bracket applying to payers with an annual income of 40 million yen(approximately 375,000). By contrast, the top bracket is charged only 20% for income derived from foreign exchange or stock market trading.he heavy taxes faced by large-scale bitcoin traders has prompted a number of Japanese cryptocurrency traders to explore relocating to jurisdictions offering more lenient taxation on earnings derived through virtual currencies.
