Japan/bitcoinnewsboards

Japan to tax cryptocurrency investors on their gains.

Japan’s National Tax Agency now requires cryptocurrency investors to declare their profits in annual tax filings due February 16 to March 15. They have ruled capital gains from such virtual currencies as a form of “miscellaneous income” last year in Japan.

The exact words of Kengo Maekawa, CEO of Shiodome Partners Tax states, “There are already people who got wealthy from cryptocurrency trading and who leave the country to head to tax-free places such as Singapore.” He explained that most clients looking for tax advice for their revenue from cryptocurrencies are 30-40-year-olds.

The tax to be levied, on profits from virtual money, runs from 15 to 55 percent, with the top amount applied to investors with annual earnings of JPY40 million (US$365,000).

The decision is based on tax laws 27, 35, and 36. A rough translation of the law is as follows:

“Taxation relationship when profit arises by using No. 1524 Bitcoin [Laws and Regulations as of April 1, 2014] Bitcoins can be used for purchasing goods, etc. However, profits arising from using this Bitcoins are subject to income tax. Gains and losses (gains or losses recognized on the basis of relative relationships with foreign currencies or foreign currency) arising from the use of this Bitcoin, as a general rule, except for cases arising in association with acts that cause various incomes such as business income, It is classified as miscellaneous income. (Law 27, 35, 36).”

Japan isn’t alone in taxing digital money. In the US., the Internal Revenue Service in 2014 declared cryptocurrencies to be property, like gold or real estate, making long-term capital gains on them subject to tax, though at rates lower than Japan.

The revenue-raising potential for the Japanese government could be significant. In recent months about 40 percent of all trading in Bitcoin – the most widely known virtual currency – has been against the yen.

Learn more about Japan’s cryptocurrency regulations here: https://smartereum.com/japan-is-cryptocurrency-investors-to-be-taxed-at-up-to-55-japanese-cryptocurrency-regulations/

So to conclude,

The National Tax Agency of Japan has finally caught up to cryptocurrency traders within its borders, raising fears that these profits could be taxed as high as 50 percent.

Any profit made from cryptocurrencies is now classified as “miscellaneous income,” which includes any gains from sales, trading, purchasing goods with cryptocurrencies, mining, and network forks.

cryptocurrencies/bitcoinnewsboards

What is Canada’s say on cryptocurrency?

In Canada, cryptocurrencies can essentially be treated as money, a commodity, or even income. This makes things quite difficult. According to a report by a law firm, the current regulations on cryptocurrencies are not enough and people are struggling to figure out how they should be reporting these transactions.

At the World Economic Forum in Davos, Canadian Finance Minister Bill Morneau said his country isn’t planning on making changes to existing tax code to deal with cryptocurrencies. Rather, the main focus will continue to be on “making sure that we understand what’s going on underneath that market, to make sure that we aren’t introducing any risks into our economy, whether they be risks like money laundering or terrorist financing.”

Right there, in Canada, decade-old tax rules with no specific provisions for cryptocurrencies are being applied to a fast-changing online technology that presents its own complications. The existing system generally considers Bitcoin a commodity, and profits can be either a capital gain (half of which is taxed) or fully taxable income, like a salary. Really, it depends on the facts and circumstances of a particular taxpayer.

On the other hand, the Canadian governor warns people to stay away from virtual currencies saying, “Buyers should beware, it’s much closer to gambling than investing.” He said regulations will eventually come and they will be developing regulations around this space in due course while they’re being careful to do here is to not stifle innovation.

Read the talks with Poloz here: http://blocktribune.com/bank-canada-head-will-regulate-cryptocurrency/

Meanwhile, news like these are running the errands: Fried chicken chain KFC Canada is accepting bitcoin – for a limited time and for a cryptocurrency-themed bucket of chicken, that is. The limited-time marketing move sees the Canada-based chain advertising “The Bitcoin Bucket” complete with a Facebook-based live-tracker of the standing price for the product, which works out to roughly 20 Canadian dollars depending on the exchange rate with bitcoin.

Also, the Canadian government has launched a trial to explore the use of blockchain technology in making government research grant and funding information more transparent to the public.

It has been noted that Canada may soon be able to count itself among the world’s prime cryptocurrency mining destinations. Canada might be able to solve Bitcoin’s energy problem, as cryptocurrency mining becomes more prevalent, mining operations increasingly use more energy.

Let us wait to watch the picture of Canada with cryptocurrencies.