On Oct 17, Japanese tax committee conducted a debate on simplifying the cryptocurrency tax reporting stating that the current system is complex and doesn’t help in thorough realization of the cryptocurrency gains. The officials of the committee advised that the government should seek ways to adjust accordingly to facilitate simpler methods for reporting cryptocurrency tax. It has to be noted that the Japan government’s move to modify regulations without compromising on security has been welcomed by the start-ups and has increased the market surge.
Current tax regulations require consumers to file tax for annual gains over 200,000 yen ($1780) and the process is very stringent and complex. The United States had earlier stressed that the number of tax payers will be very less and the people who do correctly will be even lesser, if the tax filing process is not simplified. Several tools have been developed in the US to aid people with tax filing. At this point Japan does not have any such tools that are approved and available in the market and the officials claim that such tools should help in calculating holdings, donations, and inheritance tax