The tax rate can be up to 55%.
Japan’s national tax agency has updated its list of frequently asked questions about cryptocurrencies, Cryptonews said. It introduces the concepts of staking and crypto-lending.
Under the new rules, staking and crypto-crediting must be taxed similarly to cryptocurrency mining. The tax must be charged at the time the cryptocurrency appears in the wallet. If miners, shareholders or crypto lenders sell or lend their tokens at a higher market price, their profits MUST be deposited. Crypto investors should fix the asset price when buying.
Tax rates vary depending on the amount of income. The maximum rate is 55%. In comparison, the US tax rate is 10-37% for short-term capital gains and 0-20% for long-term capital gains.
It is noteworthy that the taxation of the crypto industry in Japan has not affected non-exchangeable tokens (NFT) and free token giving.
We will remind, last week the media reported the massive shutdown of crypto startups in Japan. The reason for the exit of crypto enthusiasts from the country is the high tax rate on cryptocurrencies.
Read also: House committee approves tax increase on cryptocurrencies.