Japanese Finance Minister Mulls Crypto Tax Changes
Japan’s Finance Minister and Deputy Prime Minister Taro Aso has hinted that cryptocurrency-related earnings in the country could soon be taxed at a flat rate of 20% as the government looks to fine-tune its tax policy.
Crypto-earnings, under Japanese law, currently need to be filed as “miscellaneous income.” Such a move would effectively put crypto-earnings on a similar financial footing as forex and stock trading earnings, which are subject to a flat rate of 20% tax.
“Miscellaneous income” earnings, however, are taxed progressively, with rates of 15-55%.
Aso, who has previously come out in favor of the country’s exchanges adopting self-regulating policies, was speaking in response to a question on cryptocurrencies posed during a parliamentary budget committee session, reports Reuters.
Aso has proposed that cryptocurrency transactions could be subject to “separate” status in yearly tax declarations.
However, Aso appears somewhat unsure as to whether the Japanese public will be in favor of the change. He told the committee he was “doubtful” that the public would be “understanding” of the changes.
Aso also stated that cryptocurrencies’ role in the world of international finance remained “uncertain,” and even warned about the government placing too much confidence in the development of blockchain technology in the financial industry, saying blockchain’s link with cryptocurrencies could be a cause for concern.