Japan: 331 cryptocurrency investors generated a profit of one million dollars in 2017

The year 2017 was marked by a multitude of crypto-millionaires who generated significant profits. The Japanese Tax Authority, National Tax Agency (NTA), revealed that 331 investors in cryptocurrencies recorded a profit of 1 million dollars each, and therefore in total, 331 million dollars.

Tax returns in cryptocurrencies

21.98 million Japanese citizens earned more than 41.4 billion yen in tax in 2017. The amount of taxes collected last year has increased by 3% compared to the previous year.

Of the 21.98 million individuals who submitted their taxes to the government, 549 earned about $ 1 million on investments in stocks, goods, commodities or property. Of these 549 citizens, 331 had invested in cryptocurrencies with $ 1 million profit on the Japanese cryptocurrency market.

Unlike the tax authorities of some countries, the Japanese NTA claims that the 331 investors have all reported their revenues from cryptocurrency-related activities. The disclosure of this information is a first for the agency, which is optimistic about the transparency of the perceptions made for the government.

This is the first time the agency has announced the result of the counting of virtual currency declarations, "said Nikkei.

Although NTA remains confident, one analyst said:

If we consider the rapid growth of the cryptocurrency market at the end of 2017, 331 is simply a number and really too low. A large part of the cryptocurrency investors probably did not declare their income to the government.

55% maximum tax

The Japanese government, the Financial Services Agency (FSA) and the NTA have announced the percentage imposed by the local monetary authorities. The tax rate is 55% on non-operating profits from investments.

The NTA provided more details on how cryptocurrency profits were taxed last December.

In Japan, the profits generated by cryptocurrency trading are classified as miscellaneous income, Jiji Press said. According to Japan Times, if you earn ¥ 200,000 or about $ 1,828 or more in cryptocurrency trading, you have to pay taxes.

There are 7 income tax brackets in Japan. Profits of up to 1.95 million yen, or $ 17,823 or less, are taxed at 5%. Those who earn more than 40 million yen are subject to the highest tax rate, 45%. However, "your income is also subject to a 10% residential tax. The maximum tax rate is 55% in total, "said the media.

What do you think of the way Japan taxes transactions in cryptocurrencies? Let us know in the comments section below.