Japan Debates Its Bitcoins Tax

[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]

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[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.