The Nikkei announced that the Japanese Tax Agency has already started accepting the 2018 final income tax returns. People with annual salaries that surpass 20 million yen or non-salary income that is more than 200,000 yen are needed to declare it. According to the tax regulations, all monies acquired through horse racing, cryptocurrency transactions, online auction, and all other gambling activities are categorized as ancillary revenue.
It is mandatory for all Japanese citizens to declare it in the case that their cumulative yearly income is more than 200,000 yen. The currency income calculation strategy is primarily based on the standards provided by the National Tax Agency. The period of filing tax returns started on February 18 and will end on March 15. Some of the declaration venues also correspond on Sunday, February 24 and March 3.
The National Tax Agency offers a dedicated screen for an extensive smart declaration on the homepage (HP) and users can file their final returns using Smartphone. Additionally, the dedicated screen can be used by year-end adjusted salaried individuals and it makes it easy to declare donation deductions like hometown tax payment and medical expenses deduction.
Even if an individual makes a mistake while filing, they can correct the errors easily provided that the deadline has not elapsed. For all those individuals who choose smart declaration, ID (16 digits) issued exclusively by the tax office and password set by themselves are necessary. The IDs can be issued at any tax office in the case that there is a personal identification document including the driver’s license.
Smart declaration has made it easy for the citizens to file their tax returns quickly and easily. Japan is not the first government to consider cryptocurrencies since the Ohio State government in the US started accepting bitcoin in 2018.
The government has already acknowledged that the digital assets exist and asked citizens to declare all wealth acquired through engaging in the new markets. Thus, in the near future, the Japanese government might also start accepting digital assets as part of tax payments.
How It Will Affect Crypto Markets?
Japan’s government is gradually changing its stand on cryptocurrencies. With the recent acknowledgments and requirements to declare all proceedings acquired through investment and transactions in virtual assets, it shows that the digital currencies are steadily gaining mass adoption.
An increasing rate of mass adoption is beneficial to the crypto markets since the bullish sentiments will return and most of the major tokens will start rising again. After the 2018 Final Income Tax Returns declarations are done, traders and investors will re-organize the portfolios and prepare the investments for the new assets in 2019.
The markets are also showing progressive growth signs with the launch of Fidelity and Bakkt projects set for launch in 2019. With more institutional investors joining the markets, the crypto world will gain strength and stability that will propel prices higher. Thus, 2019, is gradually shaping up to become the year of the cryptos.
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