Japan’s National Tax Agency (NTA) is going to implement a new strategic policy aimed at enhancing the environment for people and businesses to declare their income tax returns related to cryptocurrencies, Bitcoin.com reported.
Earlier in April, the NTA had announced a study group with the objective of exploring how to improve the environment for properly declaring cryptocurrency transactions and tax payment. Following a few of these study sessions, to be held until the end of this year, the NTA plans to frame a concrete tax policy ahead of next year’s tax return.
The agency is reportedly working with the Financial Service Agency (FSA) and cryptocurrency related organizations on a simplified tax declaration method, which would automatically calculate profits and losses made from cryptocurrencies.
The agency is urging private firms to utilize the software which can automatically calculate profits and losses made in cryptocurrency. The NTA is also considering reducing the paperwork involved in tax declaration to further simplify the process.
According to Bitcoin.com:
“Profits made after selling crypto would correspond to miscellaneous income. A tax return will be required to be filed for general company employees earning in crypto, if profits of more than 200 thousand yen ($1,800US) worth of crypto is earned between January and December of that year.”
