Takeshi Fujimaki, a Japanese lawmaker, has recently spoken in support of local crypto users burdened by heavy taxes. Fujimaki, who represents one of Japan’s largest political parties, Nippon Ishin, suggested four significant changes to the national taxation scheme currently applicable to the crypto space.
Fujimaki urged the authorities not to undermine the future of virtual currencies and the innovative technology behind them. He believes these measures, if introduced, would help to lighten the current tax burden on users. Thus they might also promote the mass adoption of digital currencies in Japan and bolster the further development of blockchain technology.
- Lower tax rate
First of all, the lawmaker proposes to set a distinct tax rate of 20% on crypto gains. It should be noted that while virtual currencies are recognized in Japan as a legal method of payment, profits made on them are defined as “miscellaneous income” and must be reported to the national tax authorities. Such gains are currently subject to the tax in the amount up to 55% depending on the volume. Fujimaki explains it shouldn’t be high like this because trading cryptos is a risky business, and profits in this segment are not as stable as employees’ salaries. It’s no wonder ...
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