Regulation of Blockchain: National Tax Agency of Japan Released a Q&A Regarding the Tax Calculation Infinity Blockchain Labs

Regulation of Blockchain: National Tax Agency of Japan Released a Q&A Regarding the Tax Calculation

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January 30, 2018

On December 1, 2017 the National Tax Agency released a statement relating to regulation of blockchain titled “Tax Calculations on Cryptocurrency Investments.”

How regulation of blockchain system will work

Tax is charged if:

  • Converting cryptocurrencies into a legal currency
  • Purchasing items with virtual currency
  • When virtual currency is exchanged for another virtual currency
  • Regardless of how assets are stored.

Under current tax laws, tax is not charged for holding cryptocurrencies. If sold or exchanged, however, up to 55% tax may be charged, calculated proportionately to value. Furthermore, future legislations may see “20% tax on assets considered shares.”
Regulation of Blockchain: National Tax Agency of Japan Released a Q&A Regarding the Tax Calculation
Below, quoted from the National Tax Agency HP regarding the regulation of blockchain:
In principle, profits arising from selling or using virtual currency such as Bitcoin are classified as miscellaneous income unless taxed as business income (requires income tax filing).
Losses arising from the calculation of the amount of miscellaneous income can not be totalized with other income.
Cryptocurrency acquired via mining is subject to business income or miscellaneous income taxation. The calculation of profit is as follows: profit – necessary expenses = taxable income
A version of this article originally appeared in Token News, a trusted news source of Infinity Blockchain Labs (IBL).

About Article Re-Publisher, Infinity Blockchain Labs

Infinity Blockchain Labs is a visionary blockchain development company engaged in intermediary and regulation of blockchain services employing blockchain compliance technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects. We aspire to empower Vietnam to become a global leader in adoption and regulation of blockchain.
In our attempts to nurture a community which can leverage blockchain development, we partner with outside institutions for research and projects. We apply this belief in collaborative relationships to how we share knowledge – an integral part of our efforts to make Vietnam a global hub for blockchain development. We are therefore delighted to share the information Token News, a trusted voice in the blockchain sphere. We trust that their expertise of blockchain developments around the globe will create a more educated, passionate group of entrepreneurs and regulators that can power  blockchain regulation  adoption all over the world.
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Regulation of Blockchain: National Tax Agency of Japan Released a Q&A Regarding the Tax Calculation

About Token News

“We analyze blockchain projects and invest in the development of those that show potential. Our dedicated staff of blockchain experts works tirelessly to gather and analyze pertinent information about each project, often contacting the team members directly to ensure the most accurate and up-to-date news. Based on this information, we then compare and analyze each project. Our credibility as a company is derived from our ability to deliver valuable information to our customers. Blockchain enterprises are cropping up all over the world and our goal is to keep you informed of the situation. We are convinced that we can create an unprecedented future by using this technology. Also, although blockchain currently faces very little regulation, Token News believes it is important to develop businesses in accordance with existing or potential laws and regulations. Projects that do not conform to regulations have no future, no matter how attractive they may be. Blockchain technology has the power to change the world by improving current businesses and enabling new ones.”
Source: https://www.nta.go.jp/shiraberu/zeiho-kaishaku/joho-zeikaishaku/shotoku/shinkoku/171127/01.pdf