The Japanese tax authority has for the first time revealed the number of high-income taxpayers who declared cryptocurrency profits in the year 2017. Out of the total number of taxpayers with miscellaneous income of 100 million yen or more, excluding public pension, 60% of them reported income from crypto transactions.
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Declaring Crypto Income
The Japanese National Tax Agency announced on Friday the number of people with 100 million yen (~US$914,000) or more miscellaneous income that includes income from cryptocurrency transactions, according to local media. Nikkei elaborated:
It is the first time that the agency announced the result of the counting of virtual currency related declarations.
The tax agency revealed that 21.98 million people filed income tax for the year 2017. Last year, “The number of taxpayers with miscellaneous incomes of 100 million yen and over from sources other than public pensions jumped from the previous year’s 238 to 549,” according to Jiji Press. Of these 549 people, more than 60% or 331 of them “gained income from cryptocurrency transactions,” the news outlet conveyed.
The “total income [reported for all taxpayers] was 41.4988 trillion yen [~$379 billion] (up 3.4% from the previous year),” the Sankei Shimbun detailed, noting that the “declared tax payments amounted to 3.0207 trillion yen [~$28 billion] (a 4.6% increase), which was the highest in 10 years.”
According to Nikkei, tax reporting of crypto transactions is challenging because each crypto exchange reports transaction data differently. According to industry stakeholders, some exchanges do not separate purchase and sale transactions and “there may be upper limits on the number of transaction records that can be acquired,” the publication added.
55% Tax Possible
The National Tax Agency released guidance
