Bitcoin is taxed up to 110% in Japan

[FortuneFollower]

It will be a complex situation for the Japanese. They can just go to any other country and buy bitcoin there without those taxes, for sure some of them will do it.

For every country, to be honest. Japan set the taxes very high, but there are countries that still lack a transparent tax system for crypto. You never know what stupid ideas these countries will have for their bitcoin taxation.

Better to have taxes that are at least real for the population, so to speak, than to make people go through and above the laws to get things done.
Alas - much time is needed for big guys to understand and change things up, that's how it always was and will be, probably.

[NotATether]

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

They want crypto normies* to be enslaved to monthly salaries. Of course nobody is going to do anything about people who are millionaires in other areas, like athletes, business people, real estate investors... only crypto HODLers need to be taxed because our profession is "regulated" and therefore, somehow, our profits belong to them.

And then they wonder why there are so many offshore companies and tax loopholes being used.

[hero_the_bossman]

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

They want crypto normies* to be enslaved to monthly salaries. Of course nobody is going to do anything about people who are millionaires in other areas, like athletes, business people, real estate investors... only crypto HODLers need to be taxed because our profession is "regulated" and therefore, somehow, our profits belong to them.

And then they wonder why there are so many offshore companies and tax loopholes being used.

Rich pay up for things to stay that way.
We, on the other hand, are just prey for them in a regulatory sense.

[Perfectbaby]

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

The real question is what if person relocated to other country that are more cryptocurrency friendly and pay less tax, maybe some countries that accepts 0-10 percent taxation from cryptocurrency wouldn't this help?
Maybe, if they want to sell their cryptocurrency and bitcoin, they could reach a friend from such country and then they could received their equivalent to their local currency (fiat), won't this work as well?
Because just come to think of this, paying 110 percent as tax, then what will they benefits from the transactions if all these are excluded from their total payments?

[FortuneFollower]

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

The real question is what if person relocated to other country that are more cryptocurrency friendly and pay less tax, maybe some countries that accepts 0-10 percent taxation from cryptocurrency wouldn't this help?
Maybe, if they want to sell their cryptocurrency and bitcoin, they could reach a friend from such country and then they could received their equivalent to their local currency (fiat), won't this work as well?
Because just come to think of this, paying 110 percent as tax, then what will they benefits from the transactions if all these are excluded from their total payments?

I do think it would work out - however, it just makes it all very inconvenient for the enthusiasts in Japan, unfortunately.
There will be ways around the problem, however, they would be temporary, if there would be even more changes that would affect the taxes.

[Ziskinberg]

For every country, to be honest. Japan set the taxes very high, but there are countries that still lack a transparent tax system for crypto. You never know what stupid ideas these countries will have for their bitcoin taxation.

We’re lucky if we live in a country where Bitcoin taxes aren’t strictly enforced. Take the Philippines, for example - Bitcoin taxes are simply part of income taxes. Since there’s no requirement to declare holdings, it’s more of a voluntary thing to remit taxes owed. And let’s be honest, without penalties for not declaring, most holders aren’t likely to come forward and pay up. It’s a bit of a gray area that works in favor of crypto enthusiasts.

[fikrett]

For every country, to be honest. Japan set the taxes very high, but there are countries that still lack a transparent tax system for crypto. You never know what stupid ideas these countries will have for their bitcoin taxation.

We’re lucky if we live in a country where Bitcoin taxes aren’t strictly enforced. Take the Philippines, for example - Bitcoin taxes are simply part of income taxes. Since there’s no requirement to declare holdings, it’s more of a voluntary thing to remit taxes owed. And let’s be honest, without penalties for not declaring, most holders aren’t likely to come forward and pay up. It’s a bit of a gray area that works in favor of crypto enthusiasts.

I hope for the state of affairs for you currently - but it may change one day in a blink of an eye 
Who knows what these fellas in their think tanks are thinking regarding crypto in the future to come.

[MArsland]

Hmmm, interesting... since they can’t outright ban it, they slap huge taxes on it to discourage people from using it. It’s like a sin tax, similar to those on things the government considers "not beneficial" to us. This feels like the centralized government’s way of trying to undermine Bitcoin (decentralized) by using taxes as a tool.

But do we get upset about it? Not really, because we always find ways to navigate around these taxes, knowing they’re not exactly fair.

The definition of blatant robbery supported by government policies with tax compliance, this sounds crazy. What countries do to limit profits will only demand defiance. The higher taxes applied especially on crypto assets proves that the government does not want us to get rich.

[apogio]

Since there’s no requirement to declare holdings, it’s more of a voluntary thing to remit taxes owed. And let’s be honest, without penalties for not declaring, most holders aren’t likely to come forward and pay up. It’s a bit of a gray area that works in favor of crypto enthusiasts.

It's a difficult endeavour, I know.
Because declaring holdings is a dynamic process. Since you use Bitcoin for payments and you generate more addresses, it's difficult to keep up with all of them.
Declaring profit/loss on the other hand, is also difficult, because in order to have "profit" you must compare buy price versus sell price.

[fikrett]

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

they know that crypto is allowing us to make profit which is why they are taking advantage and raising the taxes as much as they could this is really crazy what reason do they even present to justify this? this is why many hide the fact that they are into crypto due to taxes this high

The reason being is - if you don't like it, you tax it till it bleeds the hell out.
But people will find other ways to interact and make transactions, without such fees and so much tax.

[Ale88]

The reason being is - if you don't like it, you tax it till it bleeds the hell out.

It's not even a smart move because there are more and more countries with a positive approach to bitcoin, and main one now is going to be the USA because finally, with Trump, the democrats are done going against bitcoin. The countries that keep taxing and taxing bitcoin will simply lose a ton of revenues because people either won't declare or will move abroad so instead of getting 40% they will get 0%.

[Z_MBFM]

It is too much. If Bitcoin is taxed so high, people will try to evade tax in various ways and many do, taxing crypto on such a large scale is in no way appreciable.  Bitcoin is not officially legalized in my country yet so we don't have to pay any tax on our crypto money yet.  And we don't account for our crypto money to the government in our income tax returns. so the whole crypto money stays in our pocket till now. so we don't know much about crypto's tax yet.  But since Bitcoin is real money, it should be taxed as much as fiat money

[retreat]

Japan is known for its protectionist nature towards their economy and banking, and that might be the reason why they impose high taxes on Bitcoin. Simply put, they just don’t want Bitcoin adoption to increase in their country and with the high taxes it will discourage their people from trading Bitcoin. I think that’s their only way to control Bitcoin in their country and make it not grow too much, it’s funny to see that but it’s a classic weapon used by the government to limit Bitcoin adoption.

[Hispo]

Japan is known for its protectionist nature towards their economy and banking, and that might be the reason why they impose high taxes on Bitcoin.

I believe it is about the government of Japan to force their people to invest in traditional businesses and markets instead of diving into Bitcoin and other decentralized currencies which could have higher yield than stocks, bonds, ETFs or other saving accounts.
Itself Japan has been conceived as one of the most conservative governments in east Asia, both politically and economically, so BTC being as decentralized as it is, they would rather the average people of Japan not to put their savings on BTC but keep it all in the bank or in national stocks. They need their economy to blossom and their currency start to earn more value if they want to have their population to stop aging and parents to have more children as it stands today.

[Ziskinberg]

Since there’s no requirement to declare holdings, it’s more of a voluntary thing to remit taxes owed. And let’s be honest, without penalties for not declaring, most holders aren’t likely to come forward and pay up. It’s a bit of a gray area that works in favor of crypto enthusiasts.

It's a difficult endeavour, I know.
Because declaring holdings is a dynamic process. Since you use Bitcoin for payments and you generate more addresses, it's difficult to keep up with all of them.
Declaring profit/loss on the other hand, is also difficult, because in order to have "profit" you must compare buy price versus sell price.

Not for me, since I don’t report. But for countries where people are required to report and enforcement is very strict, I don’t think it’s as complicated as we might imagine. Tax agencies (or whatever they’re called in those countries) would usually provide clear guidelines to follow. They wouldn’t implement a law without ensuring there’s a process in place to make compliance straightforward for taxpayers.

[Ale88]

Since there’s no requirement to declare holdings, it’s more of a voluntary thing to remit taxes owed. And let’s be honest, without penalties for not declaring, most holders aren’t likely to come forward and pay up. It’s a bit of a gray area that works in favor of crypto enthusiasts.

It's a difficult endeavour, I know.
Because declaring holdings is a dynamic process. Since you use Bitcoin for payments and you generate more addresses, it's difficult to keep up with all of them.
Declaring profit/loss on the other hand, is also difficult, because in order to have "profit" you must compare buy price versus sell price.

Not for me, since I don’t report. But for countries where people are required to report and enforcement is very strict, I don’t think it’s as complicated as we might imagine. Tax agencies (or whatever they’re called in those countries) would usually provide clear guidelines to follow. They wouldn’t implement a law without ensuring there’s a process in place to make compliance straightforward for taxpayers.

I almost wish it was as easy as you describe it but, unfortunately, that's not always the case. There are several countries where the cryptocurrencies laws keep changing and evolving because at first the government itself didn't know what bitcoin was so they simply tried to apply already existing laws without giving any clear guideline and people had to guess what the best solution was. CPAs had no idea what to do, you could talk with one and he would tell you to do this and another one would tell you to do the opposite.

[Antotena]

I couldn't believe what I read but it's true. In Japan, if you sell a crypto, you have to pay 55% any gain you make from it but that's not the end of nightmare, that's the start and a true nightmare starts when you receive a crypto inheritance. An inheritance tax is maxed out at 55%, so, if we combine inheritance tax, income tax and local resident tax, the person who got crypto as an inheritance will pay up to 110% taxes, which means that you pay 10% more than what you got.

This is yet a place where crypto isn't regulated, just wow! The more I look at this proposition the more I see it as a way to make citizens not to be interested into crypto, the government is like since we can't tell them to stop buying Bitcoin and they want it by all means, use the tax to discourage, when you tell them to pay more of what they earned, they will not be interested in buying Bitcoin again, this is where I see where this is going, just discouragement.

Now that everyone want Bitcoin adoption in their country, I hope they will be very ready for anything that comes later, this is what they want and this is what they want to do. The funny part about the governments receiving these taxes of Bitcoin is they are not holding, they are selling them and dumping them on the market to get the actual usd they use to do their thing and let the people continue to speculate on the future.

[apogio]

Not for me, since I don’t report. But for countries where people are required to report and enforcement is very strict, I don’t think it’s as complicated as we might imagine. Tax agencies (or whatever they’re called in those countries) would usually provide clear guidelines to follow. They wouldn’t implement a law without ensuring there’s a process in place to make compliance straightforward for taxpayers.

In fact, there are some things that they should consider.

A. what will they tax? Ownership or gains / loss?
B. how will they handle multiple addresses and multiple exchanges.
C. how will they handle P2P?

In general, I predict that they 'll focus on CEXs and apply taxation on withdrawals, so they don't have to care about each individual purchase. Well, they will care, but it 'll be impossible to do anything.

[Shishir99]

I couldn't believe what I read but it's true. In Japan, if you sell a crypto, you have to pay 55% any gain you make from it but that's not the end of nightmare, that's the start and a true nightmare starts when you receive a crypto inheritance. An inheritance tax is maxed out at 55%, so, if we combine inheritance tax, income tax and local resident tax, the person who got crypto as an inheritance will pay up to 110% taxes, which means that you pay 10% more than what you got.

LOL. I assume they did it to catch illegal crypto users. They did not want to allow cryptocurrency in their country, but they were forced to do so because they had to follow what the entire world was doing. So they allowed cryptocurrency and made a rule so no one can use cryptocurrency. I have heard a couple of times from my locals that we are happy that crypto is banned here. I guess I have said that somewhere as well. I would say, it is better to keep it illegal than making it legal and charging 110% tax on it.

[OsaiEmma]

I couldn't believe what I read but it's true. In Japan, if you sell a crypto, you have to pay 55% any gain you make from it but that's not the end of nightmare, that's the start and a true nightmare starts when you receive a crypto inheritance. An inheritance tax is maxed out at 55%, so, if we combine inheritance tax, income tax and local resident tax, the person who got crypto as an inheritance will pay up to 110% taxes, which means that you pay 10% more than what you got.

Recently, Italy increased tax on crypto from 26% to 42%, Denmark also has up to 52% tax on crypto gains as far as I know. The world is going crazy, especially the government which thinks that we don't have a right to make profit, they want us to be enslaved to monthly salaries.

Here is the source: https://www.mitrade.com/insights/news/live-news/article-3-529523-20241218

OMG, then crypto investment is a huge no go area in Japan, I mean, u are practically making losses here, IMO I think it's an indirect way to say, no crypto investment is acceptable in this country. Well, it's a clever way to ban crypto lol