Japan Tax Commission is searching on how to simplify the current tax filing system for cryptocurrencies in order to ensure investors accurately report their gains.
The commission, which guides policy on taxes and also advises the prime minister, held a general assembly meeting on Oct. 17 to discuss potential improvements to the process, according to regional news outlet Sankei.
The committee planning on adding new system that would standardized the tax filing process and make it easier for tax payers
Currently, calculating cryptocurrency profit can be bulky, the report said, adding that the price for a cryptocurrency on different exchanges can vary, while the way different platforms store their historical transaction data is also not standardized. As such, taxpayers may find it difficult to submit a proper tax filing.
Currently, profits from the sale of cryptocurrencies in Japan fall under “miscellaneous income.” A sliding tax rate from 15 to 55 percent is applied, depending on the actual amount of gains above a threshold of 200,000 yen per year, or about $1,800.