cryptocurrency exchange Cryptocurrency news

Japan to introduce major cryptocurrency tax reforms in 2024

In a recent cabinet meeting held on December 22, the Japanese government finalized the draft cryptocurrency tax reform for fiscal year 2024. This reform comes with a significant change that affects companies that hold crypto assets. The change eliminates the period-end mark-to-market tax that previously applied to companies holding crypto assets issued by third parties (virtual currencies).

As a result, companies will now only pay taxes on profits from the sale of virtual coins and tokens, aligning with the tax system for individual investors. This change aims to ease the tax burden on companies involved in holding and operating crypto assets.

Japan ends cryptocurrency tax on unrealized gains

The revision changes the scope of application of the end-of-period mark-to-market adjustment under the Corporate Tax Law. Previously, companies recorded profits or losses based on the difference between the market value and the book value of crypto assets at the end of the fiscal year. The new policy excludes this valuation at market price if the asset is assumed to be held continuously.

The tax reform responds, in part, to a request submitted by the Japan Crypto Asset Business Association (JCBA) for the 2024 tax reform. The change will promote the growth of Web3, support domestic startups using blockchain technology and attract projects international.

Last year’s tax reform exempted only virtual currencies issued by companies themselves from taxes at the market price. However, growing calls for equal treatment for cryptocurrencies issued by other companies influenced this year’s review.

Will this boost cryptocurrency adoption in Japan?

The 2024 tax reform draft also includes plans to reduce income tax and residence tax by 40,000 yen per person starting in June 2024, tax reductions for companies, and the establishment of a new tax system for sectors strategic and innovation. This is likely to result in a substantial decline in revenue of 3,874.3 billion yen for national and local governments, making it the third largest decline since fiscal year 1989.

The bill requires approval from the House of Representatives and the House of Councilors.

This tax reform marks a crucial step in the introduction of separate taxes (20%) and loss carryover deductions, meeting the wishes of cryptocurrency investors. However, discussions regarding the calculation of profits and losses on crypto asset transactions, including the imposition of a flat tax on the conversion of crypto assets into legal tender, and the consideration of “pass-through” deductions for three years from of the following year, are left for future deliberations. . The development of the corporate tax system is expected to stimulate active discussions on future tax reforms in the crypto space.

Japan has always maintained a friendly approach to cryptocurrencies and therefore remains the preferred destination for cryptocurrency companies. The country has made crucial reforms in a timely manner. Earlier this year, Japan allowed venture capital firms to invest directly in cryptocurrencies.

Bitcoin Bitcoin ETF Bitcoin Investment Cryptocurrency Investment Cryptocurrency news HYIPs Investment News

Slovak Parliament Approves Cryptocurrency Tax Cut

The Slovak parliament voted on June 28 to approve a change that will reduce personal income tax on profits made from the sale of cryptocurrencies that the user has owned for at least one year. Click here for more information on cryptocurrency trading.

Taxes will be cut from the current sliding scale of 19% or 25% to 7%, a significant reduction. Cryptocurrency payments of up to 2,400 euros, or about $2,622.20, will not be taxed.

More tax breaks for cryptocurrency users in Slovakia

Additionally, the bill that was voted on exempts cryptocurrency income from a 14% contribution to health insurance.

A local Slovak media reported that the Ministry of Finance believes that the amendment will have a financial impact of around 30 million euros per year. A few weeks ago, the parliament approved another constitutional amendment that codified the right of citizens to use cash as a form of payment in light of the discussion on a digital euro.

Slovakia is one of the 27 nations that make up the European Union, which has been actively working on regulating the cryptocurrency market. On May 31, the EU passed its landmark Markets in Crypto Assets (MiCA) regulations, as previously reported here. The rules were developed with the intention of making Europe a hub for trading digital assets.

Bitcoin Bitcoin Investment Bitcoin Wallet Crypto Mining Cryptocurrency Investment Cryptocurrency news HYIPs Investment News NFT Investment

Cryptocurrency tax rules will reduce US budget deficit by $11 billion in ten years: White House

The Biden administration’s budget said modernizing tax rules to include digital assets will bring the government $4.9 billion in revenue in 2023.

The US government’s fiscal 2023 budget includes about $11 billion in revenue over the next decade from modernizing rules on digital assets.

According to US President Joe Biden’s fiscal year 2023 budget released by the White House on Monday, changing tax rules on digital assets will reduce the deficit by $10.9 billion from 2023 to 2032. White House said it would “modernize the rules” to include certain taxpayers who declare possessions. of digital assets in foreign accounts, amending market adjustment rules to include digital assets, and requiring financial institutions and cryptocurrency exchanges to report additional information. In addition, it proposed to “treat bond lending as tax-exempt to include other asset classes and address income inclusion.”

The Biden administration has estimated that modernizing tax rules to include digital assets will bring the government $4.9 billion in revenue in 2023. In addition, the budget included $52 million to combat the “misuse of cryptocurrencies,” expanding the Department of Justice’s ability to deal with cyber threats. for the United States. The funding will provide the government agency with “more agents, improved response capabilities, and enhanced intelligence collection and analysis capabilities.”

President Biden said his administration is on track to reduce the US deficit by more than $1.3 trillion by 2022. Among the president’s proposals to increase government revenue is one that calls for a tax rate above 20% of income for American families worth more than $100 million, about 0.01% of households, according to the White House.

Under the leadership of @POTUS, America is on the move again.
-We created more than 6.5 million jobs in 2021.
-Our economy had the highest growth in almost 40 years.
-The unemployment rate dropped to 3.8%.
-And the deficit fell last year by more than $350 billion.
— The White House (@WhiteHouse) March 28, 2022

The proposed budget followed Biden signing an executive order on March 9 establishing a regulatory framework for digital assets in the United States. The order will require government agencies to explore the potential launch of a digital dollar, as well as coordinate and consolidate policy into a federal framework for cryptocurrencies.

Related: Regulators and Industry Leaders React to Biden’s Executive Order on Cryptocurrencies

The current administration in the US has now considered cryptocurrencies both in their budget estimates and in a regulatory framework. However, the world’s largest democracy recently voted to establish a framework on digital assets through tax policy. On Friday, Indian lawmakers passed a finance bill that included an amendment to a 30% tax on digital assets and non-fungible token transactions. In addition, the framework will not allow deductions for business losses when calculating revenue.

Bitcoin Bitcoin ETF Bitcoin Investment Bitcoin Wallet Cryptocurrency Investment Cryptocurrency news Investment News NFT Investment

60,000 Indians urge government to cut cryptocurrency tax to avoid ‘devastating impact’

Many Indians have signed a petition for the government to introduce reasonable tax policies for cryptocurrencies. This week, India’s Finance Minister Nirmala Sitharaman proposed taxing cryptocurrency income by 30%.

Indians Sign Petition Calling Government to Reconsider Cryptocurrency Tax Proposal

A petition has been started on for the Indian government to “introduce reasonable tax policies for cryptocurrencies”.

Finance Minister Nirmala Sitharaman said during her 2022-23 budget speech earlier this week that crypto income will be taxed at 30% and no deduction will be allowed except for the cost of acquisition.

Aditya Singh, who runs the “Crypto India” YouTube channel, started the petition asking India’s Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to make changes to the tax proposal. To date, more than 58,000 people have signed the petition.

The petition begins by noting that there are between 15 and 20 million cryptocurrency investors in India, as well as several hundred thousand young Indians who are part of the industry. Furthermore, Indian investors hold around $6 billion worth of crypto assets. The petition adds:

The crypto industry also contributes significantly to the country in the form of employment, bringing FDI investments, GST payments and income tax revenue to the government.

The petition asks Prime Minister Modi and Finance Minister Sitharaman to consider five requests.

The first request is that the cryptocurrency industry not be treated like the betting and gambling industries. The second is to adjust the current proposed rate of 30% to the rate applicable to equity transactions.

Furthermore, the proposed 1% tax deducted at source (TDS) should be reduced to 0.05% and “compensation and pass-through of losses should be allowed as cryptocurrency markets are in their early and highly volatile stages” . The acquisition cost must also be defined “to include exchange rates, blockchain network fees, interest payments, royalty payments on NFTs, etc.”