Japan's Deputy Prime Minister, Taro Aso, calls for a revision of the crypto regulation regarding taxation system and switch from progressive rate to uniform rate for crypto transactions.
Since this February crypto traders face a progressive tax on crypto income at the range 15-55%. At the same time, gains from cryptocurrencies transactions are considered as miscellaneous income. Moreover, the investors have to provide tax policies annually.
As commented the National Tax Agency (NTA), there are seven income tax brackets in the country with the taxes being set in line with the earnings (5-45%).
"The maximum income tax rate now stands at as high as 55% including 10 percentage points for the local individual inhabitant tax," the authority stated.
Meanwhile, the Deputy Prive Minister put forward a proposal to implement a uniform taxation for the crypto segment. He believes that taxes should be similar to those effects on stock or currency markets (some 20%).
"The profits gained by virtual currency transactions should be changed from current ‘miscellaneous income’ to ‘declaration separate taxation," Taro Aso stated.
As Taro Aso said, sales of securities like shares, warrant bonds, are subject to separate taxes set at 20.315% (national tax+local inhabitant's tax).
According to the 2017 data, 331 payers declared crypto income exceeding JPY 100 million in total ($914,000).