Japan’s Tax Committee Looks to Simplify Cryptocurrency Gains Reporting

Japan’s Tax Investigation Committee, an advisory body of the government, is looking to simplify its tax filling system as confusion has led to poor reporting of profits with digital currencies in the country.

Japan Lawmakers Discuss Ways to Simplify Tax Returns of Cryptocurrency Gains

At a meeting held on Wednesday, members of the taxation committee spoke before the General Assembly to provide expert insight on the emerging problem of reporting cryptocurrency gains.

Confusion over the calculation method and the different types of profit besides gains on the sale of digital assets has urged policymakers to discuss the issue.

“The environment should be adjusted so that tax returns can be simplified.”

In the current tax filling system, general employees who earn more than 200,000 yen per year in digital currencies must pay income tax. But not only the gains from the difference between the acquisition price and the selling price are taxed.

Investors also have to report the profit…