National Tax Agency Crypto-Asset Taxation: Who Qualifies and What You Get
Understand how crypto-asset income is categorized and the requirements for maintaining compliance with Japanese tax rules.
This scheme outlines the rules for managing and reporting income earned from crypto-asset transactions in Japan.
Who it's for
This applies to anyone who earns income through the trading or use of crypto-assets.
What you get
By following these guidelines, you achieve legal compliance regarding your crypto-asset earnings. These earnings are categorized as miscellaneous income, and following the rules helps you manage your obligations within the appropriate tax brackets.
What it costs you
Compliance requires significant record-keeping. You must maintain and provide transaction logs for your trades and complete an annual tax filing, which is known as Kakutei Shinkoku.
The catch to know
It is important to understand that crypto gains are treated as "miscellaneous income" (Zatsu-shotoku) rather than capital gains. Because of this specific classification, you cannot offset your crypto losses against other types of income.
How to apply
- Maintain thorough records of your crypto-asset transactions.
- Prepare for your annual tax filing (Kakutei Shinkoku).
- Consult the official portal for specific filing instructions: https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1524.htm