Japanese Government To Make Cryptocurrency Taxation Process Simple
Tax experts in Japan who are responsible for advising the government on taxation matters has called for the simplification of the country’s cryptocurrency taxation filing process.
The officials of the tax panel revealed that the process is currently complicated and a change is required in order to enhance accuracy and compliance. According to Sankei, the committee held a meeting earlier in the week where the proposal to change the current cryptocurrency tax filing system was discussed.
Part of the problem lies in the fact that calculating cryptocurrency gains for taxation purposes is a complex affair and this discourages some owners of digital assets from declaring their crypto holdings when filing tax returns.
Cryptocurrencies in the Asian country are taxed not only on the gains made but also on the gains accruing when one digital asset is converted into another.