Japan Starts Taxing NFT With Clear Transparency Regulations
The National Tax Agency of Japan issued guidelines for the taxation of NFT transactions, such as blockchain games, covering income tax, consumption tax, etc.
According to Coinpost, the Japanese National Tax Agency released a general tax treatment document related to NFT. In addition to listing the cases of vying for income tax on NFT, the guide also released cases of consumption tax and other situations. Because the acquisition and use of in-game tokens are very frequent and difficult to evaluate, they will be calculated uniformly at the end of the year.
The guidelines state that if an individual creates an NFT and sells it to a third party (a primary distribution) or if the person who bought the NFT resells it to another person (a secondary distribution), the profit is “income taxable” and subject to tax.
If one person gives an NFT to an acquaintance for free, the party giving it may not be taxed, but the party giving it may be taxed. When someone makes an NFT and sells it to Japanese consumers through the market to get paid, the NFT maker will be subject to consumption tax. In addition, as a secondary circulation, when the purchased NFT is sold to others, if it is sold through a Japanese operator for consideration, consumption tax will be levied on the operator.
Remuneration obtained through blockchain games is, in principle, classified as “miscellaneous income” and is subject to income tax. However, if the in-game tokens obtained as rewards can only be used in the game, they are not considered taxable objects of income tax.
In addition, the principled handling of the tax law has also been clarified for the previously unclear “cases where NFTs are stolen or disappeared due to improper access.”
However, the FAQ is only an answer about general processing, and it is necessary to pay attention to specific issues that will be treated on a case-by-case basis. Therefore, it is necessary to confirm the detailed calculation method when determining the declaration with experts and the National Tax Service.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
NFTs News
Japan Starts Taxing NFT With Clear Transparency Regulations
The National Tax Agency of Japan issued guidelines for the taxation of NFT transactions, such as blockchain games, covering income tax, consumption tax, etc.
According to Coinpost, the Japanese National Tax Agency released a general tax treatment document related to NFT. In addition to listing the cases of vying for income tax on NFT, the guide also released cases of consumption tax and other situations. Because the acquisition and use of in-game tokens are very frequent and difficult to evaluate, they will be calculated uniformly at the end of the year.
The guidelines state that if an individual creates an NFT and sells it to a third party (a primary distribution) or if the person who bought the NFT resells it to another person (a secondary distribution), the profit is “income taxable” and subject to tax.
If one person gives an NFT to an acquaintance for free, the party giving it may not be taxed, but the party giving it may be taxed. When someone makes an NFT and sells it to Japanese consumers through the market to get paid, the NFT maker will be subject to consumption tax. In addition, as a secondary circulation, when the purchased NFT is sold to others, if it is sold through a Japanese operator for consideration, consumption tax will be levied on the operator.
Remuneration obtained through blockchain games is, in principle, classified as “miscellaneous income” and is subject to income tax. However, if the in-game tokens obtained as rewards can only be used in the game, they are not considered taxable objects of income tax.
In addition, the principled handling of the tax law has also been clarified for the previously unclear “cases where NFTs are stolen or disappeared due to improper access.”
However, the FAQ is only an answer about general processing, and it is necessary to pay attention to specific issues that will be treated on a case-by-case basis. Therefore, it is necessary to confirm the detailed calculation method when determining the declaration with experts and the National Tax Service.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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