Japan’s Finance Minister shows caution around the idea of changing how gains from cryptocurrencies are currently taxed.
Reuters reported June 25 that in a meeting with the Upper House’s Budget Committee, Senator Kenji Fukimaki inquired whether Japan’s current tax rules could be changed from its “miscellaneous income” classification to “separate declared taxation.” According to reports, the prime minister and minister of finance, Taro Aso, expressed caution about making such an amendment.
The minister explained to the committee that, in his opinion, it was doubtful that the public would understand such a change. He also cited the international nature of cryptocurrencies as a reason Japanese residents might oppose a change in tax classification. The finance minister was also unsure whether implementing such a change would be fair.
Presently, profit earned by cryptocurrency investors pay taxes between 15 to 55 percent because of the miscellaneous income rules, a Bloomberg report reveals. Meanwhile, stock profits are treated more like separate declared taxes and pay taxes of about 20 percent.
While the finance minister may still have doubts about cryptocurrency taxation, he still showed support for blockchain in general, stating that they have potential in other industries apart from their use in cryptocurrencies.