Japan Debates Its Bitcoins Tax

[kipibtc]

Didnt even know Bitcoins could be taxed.

Here is the article:

http://waldorftrust.com/blog-post/japan-debates-its-bitcoins-tax/

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[Amph]

of course it can be taxed, if a citizen that use bitcoin want to declare his revenue from it, it will be taxed like any other fiat money

taxing directly bitcoin is a bit more difficult for the government if their citizenz are not willing to help by declaring their income per year

[tobacco123]

Yes, bitcoin can be taxed but the process could be a bit challenging. This is why the government of many countries decided to define it as non-taxable for the time being.

However, if bitcoin continue to grow, new regulations will sure come out to include bitcoin use in tax.

[cardseller121]

Its hard to tax them looking how they can be hard to trace

[BellaBitBit]

Why wouldn't it be taxed.  It is money.  These kinds of debates are a good thing for bitcoin and can help with further adoption by making newcomers see it is treated like a real currency.

[European Central Bank]

I love the guys on here who don't think it's gonna be taxed because it's kinda special. If there's money in it then it will.

[7788bitcoin]

Glad to know Japanese Government is working on Bitcoin regulation. However, can a bitcoiner pay his/her tax using... bitcoin- since it may be considered as money?

It will be big news if Japanese Government becomes the first to put on the "BITCOIN ACCEPTED" signs outside their tax office.

[TastyChillySauce00]

Its hard to tax them looking how they can be hard to trace

only company will be taxed for its profit and revenues,and maybe every transaction on few online shops which accept bitcoin will be taxed as well and will be added into payment billing

[beerlover]

It is money so it will definitely be taxed. In that way, bitcoins are regulated in a manner. However, it is kind of unfair for the Japanese if only Japan would have bitcoins tax.
I also read that the proposed tax for bitcoin transactions is 8%. Isn't that a little... high?

[codehtcmail]

If Japan is taxing Bitcoin then for me they are implicitly acknowledging it as real money.

[crzy]

of course it can be taxed, if a citizen that use bitcoin want to declare his revenue from it, it will be taxed like any other fiat money

taxing directly bitcoin is a bit more difficult for the government if their citizenz are not willing to help by declaring their income per year

And who wants to pay taxes and go directly to the pocket of corrupt government ? bitcoin can be really taxable and they can mandate its people to declare their income simply because the technology of bitcoin that makes it more unique, I think government should support everyone because it can boost the economy.

[atileture]

Didnt even know Bitcoins could be taxed.

Here is the article:

http://waldorftrust.com/blog-post/japan-debates-its-bitcoins-tax/

No bitcoin is free and can’t be taxing only pay small fee when sending.

only exchange to cash can be taxed by government.

[Lancusters]

I love the guys on here who don't think it's gonna be taxed because it's kinda special. If there's money in it then it will.

I don't agree. There will be attempts by the state to its part of the money from the users. But I think that everything depends on us. If we don't want to pay taxes on our income then nothing happens. It is impossible to ensure the collection of taxes only repressive methods. The more pressure States the more we go into the shadows.

[Kemarit]

I love the guys on here who don't think it's gonna be taxed because it's kinda special. If there's money in it then it will.

I don't agree. There will be attempts by the state to its part of the money from the users. But I think that everything depends on us. If we don't want to pay taxes on our income then nothing happens. It is impossible to ensure the collection of taxes only repressive methods. The more pressure States the more we go into the shadows.

If you don't declare your bitcoin or crypto's  I don't think that the government can tax it. So you might as well store you crypto's in your wallet and just hold on it for as long as you can. The problem lies when you want to cash it out. You need to go to a exchange to do that. But exchanges requires your identification for KYC/AML compliant. So there's the issue now. The government will know how much bitcoin you got or how much are funds you are moving through blockchain. And you know what's next, they will go after you for non payment of tax, so its gonna be ugly. But as far as Japan is concern, since they already legalized so I don't think they need to tax if, but I could be wrong here.

Edit: https://cointelegraph.com/news/its-official-japan-has-eliminated-tax-on-bitcoin-rise-in-trading-expected

Its an old article though, maybe they have updated it or something. But I'm not sure.

[barbenoire123]

yes it can be taxed, if a user who uses bitcoin wants to declare his income and those bitcoin traced ,

[exstasie]

I don't agree. There will be attempts by the state to its part of the money from the users. But I think that everything depends on us. If we don't want to pay taxes on our income then nothing happens. It is impossible to ensure the collection of taxes only repressive methods. The more pressure States the more we go into the shadows.

If you don't declare your bitcoin or crypto's  I don't think that the government can tax it. So you might as well store you crypto's in your wallet and just hold on it for as long as you can. The problem lies when you want to cash it out. You need to go to a exchange to do that. But exchanges requires your identification for KYC/AML compliant. So there's the issue now.

Now that Bitcoin is going mainstream, it's time to get smarter about privacy than that. Exchanges that are AML/KYC compliant are just the lowest hanging fruit. There are many other ways to link wallets to identities. Many millions of dollars have been pouring into blockchain analysis companies. For example, the IRS is already working with Chainalysis and using its software to identity tax evaders.

These companies crawl the internet drawing links among addresses, and the scary thing is that people tend to leave lots of tracks behind: sloppy use of UTXOs/lack of mixing, lack of TOR use = lots of cookies and IP evidence left behind, etc. This shit all gets stored in a database somewhere and someday, it could come back to haunt us if we aren't careful, since the blockchain is permanent and public. Because of the volume of new investor activity, the focus is on exchanges now. But long term, we need to get smarter.

[Laland]

I don't agree. There will be attempts by the state to its part of the money from the users. But I think that everything depends on us. If we don't want to pay taxes on our income then nothing happens. It is impossible to ensure the collection of taxes only repressive methods. The more pressure States the more we go into the shadows.

If you don't declare your bitcoin or crypto's  I don't think that the government can tax it. So you might as well store you crypto's in your wallet and just hold on it for as long as you can. The problem lies when you want to cash it out. You need to go to a exchange to do that. But exchanges requires your identification for KYC/AML compliant. So there's the issue now.

Now that Bitcoin is going mainstream, it's time to get smarter about privacy than that. Exchanges that are AML/KYC compliant are just the lowest hanging fruit. There are many other ways to link wallets to identities. Many millions of dollars have been pouring into blockchain analysis companies. For example, the IRS is already working with Chainalysis and using its software to identity tax evaders.

These companies crawl the internet drawing links among addresses, and the scary thing is that people tend to leave lots of tracks behind: sloppy use of UTXOs/lack of mixing, lack of TOR use = lots of cookies and IP evidence left behind, etc. This shit all gets stored in a database somewhere and someday, it could come back to haunt us if we aren't careful, since the blockchain is permanent and public. Because of the volume of new investor activity, the focus is on exchanges now. But long term, we need to get smarter.

This one for is one of the most realistic issues on how bitcoin would pull people down. It just depends on each cash services in our country on how they would address issues like these. If they would give info about their costumers, then it would just lead to some issues regarding privacy and that company would just go down. Because it is a risk also for these exchange sites if they got caught by some identity notifications.

[Belkaa]

Japan is one of the digital currency front runners, and it has already legalized the use of digital currencies. Recently it issued licenses to 11 bitcoin exchanges, showing the bond between Japanese regulators, the exchanges, and the crypto community.

[RealKhan]

Most Japanese (like most westerners, I think) are still pretty much unaware of the profound significance of the blockchain, much less how it might change the world. The typical Japanese person knows very little about bitcoin, though there are enough buying it to strain the exchanges now.I think many see it as a way of hedging against a collapse of the yen, though I expect purchases will pick up.

[Argoo]

To impose a bitcomne tax the state can take some measures on this issue.
     First, the state simply can oblige all citizens to voluntarily pay tax on profits from operations with bitkoyn, while establishing criminal liability for tax evasion. Many will be afraid of such responsibility and voluntarily declare their incomes in bitkoyne.
     Secondly, the state can oblige all banks, exchangers, and exchanges for the purchase and sale of crypto-currencies to automatically incur additional income from such operations. At the same time, either there will be an obligation to provide your documents and other data for identification of the person, or not.

[bajigur894784]

really a complicated situation.
when bitcoin is adopted by a country, then the government of that country will impose a tax on bitcoin.
it will certainly lead to pros and cons, because on the other hand investors will switch to buy and sell bitcoin in foreign markets are relatively cheaper and without tax.

[1NV3ST0NM3]

of course it can be taxed, if a citizen that use bitcoin want to declare his revenue from it, it will be taxed like any other fiat money

taxing directly bitcoin is a bit more difficult for the government if their citizenz are not willing to help by declaring their income per year

I highly doubt that someone would declare his income himself as most of the investors of bitcoin are using it as a tool for merely tax evasion. Expecting complete income declaration from such people is highly difficult considering that no govt. Can tax merely a private key or wallet address.

Why wouldn't it be taxed.  It is money.  These kinds of debates are a good thing for bitcoin and can help with further adoption by making newcomers see it is treated like a real currency.

What makes you say that its money? Its merely a commodity or more precisely an investment if we look properly. A currency is easily transferable moreover for the purposes of tax must be valid in eyes of law too. Bitcoin shows no such traits. It can only be taxed once it is realized in form of local currency.

Most Japanese (like most westerners, I think) are still pretty much unaware of the profound significance of the blockchain, much less how it might change the world. The typical Japanese person knows very little about bitcoin, though there are enough buying it to strain the exchanges now.I think many see it as a way of hedging against a collapse of the yen, though I expect purchases will pick up.

I think you are mistaken. Japan highly appreciates bitcoin and blockchain moreover the fact that japan is the birthplace of bitcoin makes them even more attracted towards it. I think japanese people know much more about it than any westerner and they have incorporated its use much widely than western world. Even the japanese authority openly appreciates the beauty of blockchain and bitcoin.

[MisterPrada]

Is the government seriously considering to treat Bitcoin like other currencies? If yes, that would be highly interesting in a age of negative interest rates.

[squatter]

Is the government seriously considering to treat Bitcoin like other currencies? If yes, that would be highly interesting in a age of negative interest rates.

Yeah, it's intriguing to watch this play out. On one hand, it seems like many governments/central banks are acknowledging that they can't control cryptocurrencies and are focusing on taxation and investor-focused regulations. Part of me thinks, "maybe Bitcoin could be a normal commodity like gold."

But in the context of devaluing fiat currency, cryptocurrencies begin to look attractive. Why store value in the declining dollar when everyone else is dumping their money into growing math-based currencies? Could they really begin to threaten governmental monetary sovereignty? And if so, what will governments do then?

Maybe we'll start to see more bans on cryptocurrency businesses, mining and even payments. Then maybe we'll see how resilient Bitcoin really is!

[Flor1982]

really a complicated situation.
when bitcoin is adopted by a country, then the government of that country will impose a tax on bitcoin.
it will certainly lead to pros and cons, because on the other hand investors will switch to buy and sell bitcoin in foreign markets are relatively cheaper and without tax.

For me it is good thing that a certain country will be benefits by collecting tax thru bitcoin earnings because we are proud that bitcoin will help the economy of a certain country to become rich, strong and stable including their citizens to prosperity as long as no corruption will involve. Some holders are affraid of bitcoin tax because their earnings will going to reduce in which a selfish act.

[mycine009]

IF YOU BOUGHT $5 OF BITCOIN 7 YEARS AGO, YOU’D BE $4.4 MILLION RICHER


Ever had a case where you wished you had bought something in the past that eventually went up significantly in value? Perhaps a plot in a low-value district which is now worth ten times more? Does that ring a bell? Monday marked the seventh anniversary of what is said to be the first recorded instance of Bitcoins being used in a real-world transaction.http://[Suspicious link removed]/bitcoinfuturesLLCCFCFElaunchedtrading Over the course of seven years, Bitcoin's value has multiplied 879,999 times. If an investor had decided to spend five dollars on about 2,000 Bitcoins back then, that stake would be worth $4.4 million today. With $1,200 spent on some 480,000 Bitcoins, the investor would be worth at least $1.1 billion today.At first, Bitcoin didn’t really catch on, and it was solely the domain of the early adopters. There were very few businesses which accepted bitcoin as a payment method, and it was something which was almost frowned upon by most governments. As more and more businesses and governments accepted bitcoin, it gradually went up in value, more and more people were starting to embrace the idea of a decentralized currency, and as more people jumped on board, the price began to rise. Since the beginning of the year 2017,the value of Bitcoin spiked after gaining legitimacy in countries like Japan,futures are now available for trading on the Cboe Futures Exchange, LLC (CFE). CFE launched trading in Cboe bitcoin futures on December 10 under the ticker symbol "XBT" (contract specifications | fact sheet.) This brings many benefits to traders, including transparency, efficient price discovery.

[kimochidesh]

Most of the countries are struggling hard to form a effective revenue policy for BTC transaction. Even Indian govt. has formed a committee to analyse BTC users and decide the fate of BTC in India. This committee is working hard to form a set of rules to regulate the Bitcoin.

[lili song]

Most of country still not legalized bitcoin yet, so I think hard to run pay tax. But for Japan already legalized bitcoin, so they can set rules for tax.
Actually collecting tax for some country it will help income for that country.

[iamTom123]

Of course it can be taxed, if a citizen that use bitcoin want to declare his revenue from it, it will be taxed like any other fiat money. Taxing directly bitcoin is a bit more difficult for the government if their citizens are not willing to help by declaring their income per year.

Taxing the ownership of Bitcoin may be challenging to implement. Usually, the best way is to tax the capital gains out of owning Bitcoin or any cryptocurrency for that matter. When a Bitcoin holder decides to encash or convert his holding into cash then the difference when he bought it and when he sold the same will be subjected to tax.

However, it can also be possible to implement some sort of a sales tax applicable when a person is buying Bitcoin and usually can be collected by the seller or the exchange. The government has to always remember that there is a certain level when tax can be effective and beyond that level some people can be sorting into hidden ways to deal with Bitcoin. The only upside with taxation is that the government has no choice but to recognize that something which it plans to taxed for.

[Sithara007]

I don't have any issues, as long as the rates (GST/VAT, capital gains tax, and income tax) are reasonable. For their part, Japan did the right thing by legalizing Bitcoin and the exchanges which trade crypto-currencies. Here in India, the tax authorities are trying to bully the crypto users by sending legal notices to anyone they suspect of trading in crypto-currency.

[janah]

Didnt even know Bitcoins could be taxed.

Here is the article:

http://waldorftrust.com/blog-post/japan-debates-its-bitcoins-tax/

Of course bitcoin can be taxed but the process will be hard because its a digital money and not all people know about it. Too many countries didnt legalize bitcoin yet so it has no tax yet but if the time passes maybe sooner or later it can have a tax already.

[biskitop]

I don't have any issues, as long as the rates (GST/VAT, capital gains tax, and income tax) are reasonable. For their part, Japan did the right thing by legalizing Bitcoin and the exchanges which trade crypto-currencies. Here in India, the tax authorities are trying to bully the crypto users by sending legal notices to anyone they suspect of trading in crypto-currency.

I also have the same opinion with you. Fair taxes, and bitcoin legally for investment, trading, or transactions and government provide legal protection. That is the thing I really dreamed of.

[yojodojo21]

When I was having a seminar, our speaker told us that in Japan bitcoin is really known, it has a great impact in that country since it really adopted the crypto currency idea and the rumor creator named By a Japanese word satoshi nakamoto. Every exchange sites pays tax. Bitcoin is a currency considered as fiat in Japan even thou it's digital so the government officials permitted to put a tax on it.

[MisterPrada]

Unclear at best.
A large portion of traders and one of the major exchanges here recommends declaring profits as "misc. income" which means for MOST income tax brackets they will be taxed at a higher rate than the current capital gains tax in Japan.
Capital Gains tax would be better for most people, especially if you made a huge profit.
However, there is no clarity.
People who don't sell won't have any problems though.

[greeklogos]

of course it can be taxed, if a citizen that use bitcoin want to declare his revenue from it, it will be taxed like any other fiat money

taxing directly bitcoin is a bit more difficult for the government if their citizenz are not willing to help by declaring their income per year

Yeah. I also think that taxation is all crypto profit is going to be an usual thing, the same as taxation of our fiat profit.

[mengpujiu93388]

I like people who don't think they're going to be taxed, because it's a little special. If you have money, it will.

[expert4knowledge]

It's like any other country, bitcoin is not taxed, the money you get from cashing out from bitcoin is taxed

[Lancusters]

I don't have any issues, as long as the rates (GST/VAT, capital gains tax, and income tax) are reasonable. For their part, Japan did the right thing by legalizing Bitcoin and the exchanges which trade crypto-currencies. Here in India, the tax authorities are trying to bully the crypto users by sending legal notices to anyone they suspect of trading in crypto-currency.

I also have the same opinion with you. Fair taxes, and bitcoin legally for investment, trading, or transactions and government provide legal protection. That is the thing I really dreamed of.

When the government requires payment of taxes it has to do primarily with their own obligations. Taxes this is not a tribute. This is a payment of people services for the proper administration of the state. The government think otherwise. They became bandits who do nothing and Rob people. That's why I'm against taxes in bitcoins. The creation of cryptocurrencies is an attempt of people to build its economy.

[MoonJeina]

Didnt even know Bitcoins could be taxed.

Here is the article:

http://waldorftrust.com/blog-post/japan-debates-its-bitcoins-tax/

That was quite expected from a newbie . Bitcoin can be taxed for sure .
Many countries have already starting taxing Bitcoin and others are either thinking to tax it or ban it .
The fact is , that almost all the countries which have accepted and legalized bitcoin have also regulated and taxed it because it seemed the easiest and obvious way for the government to keep the things in their control even the revenue that people get out of crypto currency .
This is frustrating and disappointing because many people tend to join bitcoin for the sake of being tax free .

[bitcoinisbest]

Most of country still not legalized bitcoin yet, so I think hard to run pay tax. But for Japan already legalized bitcoin, so they can set rules for tax.
Actually collecting tax for some country it will help income for that country.

This is the only way which will be beneficial for the country economy as they will get huge amount of money from the taxes if structured properly. Thus users will need to pay the tax on the profits  accordingly and in turn government economy will also boost as they will get an additional source of revenue form cypto currency.

[ace4549]

Actually it must be imputed by the tax in the bitcoins.  The taxation in different countries is very essential since it is the life blood doctrine of the state in order to implement a well-organized society. 
I think it should be implemented by tax in order by whole nation to accept the cryptocurrencies in their respective countries.  It will be a win-win situation by both parties if this such thing may happen.

[BlasterS]

 I think it will more favourable if the bitcoin is being tax since it is very vital in the government and all country have a possibility to accept it.