A virtual currency that has become a hot topic recently, such as Bitcoin. For cryptocurrency investment, where the market price fluctuates more than equity investment, it is possible to get a huge profit if you ride the wave. However, when you make a profit, the question is "how much tax do you have?" Here, I would like to introduce the knowledge and countermeasures that I would like to keep in mind about taxes on profits of virtual currencies.
The tax on profits obtained from cryptocurrency transactions is, in simple terms, income tax. There are three types of income tax, namely, "total taxation", "separate taxation on tax return", and "separation tax on withholding tax", but there is no separate taxation on profits of virtual currency. Regarding the profits obtained from virtual currency transactions, the "total taxation" method is adopted in which the tax amount changes depending on the total amount of income (income) including salary.
The final tax return
Lastly, I will explain the flow of tax return. Here, let's mainly look at the case of office workers and unemployed individuals. I explained that the profit of virtual currency is "Miscellaneous income", but I want to remember when filing tax returns for miscellaneous income, "If you have salary income, the total miscellaneous income is 200,000 yen. The rule is to only declare if you exceed the limit. "
For example, when profit (income) is 120,000 yen in virtual currency transactions and there is no miscellaneous income other than this. Recently, more and more people are making pocket money at online casinos, and the money earned here must be summed up. Those who are profiting from these should be careful.
It is important to keep in mind that this rule applies only to income tax filings. It is important to remember that if you have miscellaneous income for less than 200,000 yen, you will need to file a separate residence tax return. Resident tax should be paid after June of the declared year, but income tax must be paid directly to the tax office on the spot. Once you have calculated your taxes, take the cash you need. For bitcoin trading use https://bitcoin-up.live/.
If you are not sure how to include miscellaneous income when filing your tax return and how to calculate taxes, we recommend consulting with a professional tax accountant. By requesting a tax accountant, you may be taught not only tax calculation but also tax saving measures. What is scarier than anything else is that there is an additional tax due to incorrect tax return. Don't just unknowingly make mistakes while trying to file a tax return on your own.
Tips to remember when filing your tax returns
What I want to remember when filing a tax return is the "fee" that is paid to the exchange when doing virtual currency transactions. The fees paid can be added to the profits and losses obtained in virtual currency.
For example, if a profit of 100,000 yen is generated and a fee of 20,000 yen is applied to the transaction so far, it can be declared as "100,000 yen-20,000 yen = 80,000 yen". You can record fees in the form of expenses incurred to make a profit, so be sure to record how much you have incurred.
Cryptocurrency trading is a dream transaction where you can make huge profits if you succeed, but if you do not think about the taxes that will be incurred when filing your tax returns, you may regret it. It is recommended that you not only acquire tax knowledge well, but also seek advice from tax and asset management experts. Let's manage our assets wisely and at the same time be careful about tax measures.
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So if you start bitcoin trading make sure what terms and rule are for tax in your country. Make sure about the portions that you have to pay on your bitcoin income.