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The Japanese NTA (Tax Agency) has announced a new strategic policy put in place by July 15th to promote and improve the environment for people and companies to spontaneously declare their virtual currency income tax returns.
NTA to Devise Simplified and Automated Tax Return Filing Method
Together with the Financial Service Agency and cryptocurrency related organizations, the NTA has reportedly said a simplified tax declaration method, which would automatically calculate profits made by selling virtual currencies and tax returns, is currently underway.
The NTA also urged private companies to utilize the software which can automatically calculate profits and losses made in cryptocurrency, and encouraged them to properly pay taxes, insisting the complicated tax payment method is now improved.
Earlier in April, the NTA held study sessions together with the FSA and Japan Blockchain Association aiming at exchanging opinions and thoughts on cryptocurrency tax filing methods. After a few of these study sessions, which are to be held until the end of 2018, the NTA intends to come up with a solid and concrete tax policy before next year’s tax return.
Simplifying Cryptocurrency Tax Calculation
Most of the difficulties for calculating profits obtained after selling cryptocurrencies relate to the different methods used by each crypto exchange for transaction history data storage. The NTA also pointed out the difficulties of managing distorted tax returns and cheating.
The NTA intends to solve these issues altogether by putting in place software capable of automatically calculating profits and losses and publicizing this service in support of tax returns made on crypto income mainly for IT companies.
Profits made after selling crypto would correspond to miscellaneous income. A tax return will be required to be filed for general company employees earning in crypto, if profits of more than 200 thousand yen ($ 1,800US) worth of crypto is earned between January and December of that year.
The crypto taxpayer’s burden would be eased only if the complicated calculation becomes automated. The NTA is also considering simplifying the tax declaration paperwork to ensure a secure tax payment system.
What do you think of Japan’s tax office improving the tax filing system for crypto earnings? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
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If that airline seat is a tad snug for your burgeoning backside or the distance between rows makes you claustrophobic and fearful that a bit of reclining could crush your knees, blame it on the money-hungry airline.
That’s the message from the Federal Aviation Administration, which said Tuesday…
The South Korean government is reportedly seeking to bring cryptocurrency exchanges under the direct supervision of the country’s Financial Intelligence Unit. This will obligate crypto exchanges to follow anti-money laundering directives like banks do. This is the first time a government agency has said it will oversee crypto exchanges.
The Korea Financial Intelligence Unit (FIU), under the supervision of the Financial Services Commission (FSC), recently held an Anti-Money Laundering Policy Advisory Committee meeting. The meeting was set up to discuss measures against money laundering and terrorism financing activities.
“We plan to include virtual currency exchanges under a direct supervision of the AML / CFT (Anti-Money Laundering/ Countering Terrorism Financing) system,” the committee was quoted by Maeil Business. Citing that “the legislation has already been introduced in the National Assembly,” the news outlet elaborated:
This is the first time government agencies have said they will oversee virtual currency exchanges…When the bill is passed, virtual currency exchanges will be obliged to monitor the suspicious money-laundering transactions and report them to the FIU.
The Need for Direct Supervision
Currently, the FSC and the FIU have no jurisdiction over crypto exchanges since cryptocurrencies are not considered financial assets. The regulators have to monitor money-laundering activities of crypto exchanges through banks.
With the proposed changes, according to the committee, “If a virtual currency exchange does not comply with these obligations, the FIU or the entrusted FSS [Financial Supervisory Service] will be able to inspect the monitoring system of the virtual currency exchange,” the publication conveyed.
According to the Hankyoreh, the FSS said that it will also tighten its oversight of banks that provide virtual accounts to crypto exchanges. For example, banks must report deposits of more than 10 million won per day or more than 20 million won over 7 days for crypto transactions to the FIU as suspicious transactions that could lead to money laundering.
Crypto Industry’s AML Measures
Recently, South Korea’s top cryptocurrency exchanges have been ramping up their AML measures.
One of the largest crypto exchanges in the country, Bithumb, has recently implemented some strong anti-money laundering measures. Last month, the exchange blocked the trading of 11 countries as well as tightened its verification process for foreign users. The exchange also lowered the withdrawal limits for crypto traders that do not fully verify their identity. The third largest exchange in the country, Coinone, also said that it is implementing similar withdrawal limits for accounts not using the real-name system.
Another major exchange, Upbit, has an anti-money laundering system in place in collaboration with Thomson Reuters. The exchange recently rewarded six people for reporting fraudulent cryptocurrency schemes.
What do you think of Korean government agencies wanting direct supervision over crypto exchanges? Let us know in the comments section below.
Images courtesy of Shutterstock, Bithumb, and the FSC.
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The Trump administration may shut down a federal database of consumer complaints about the financial-services industry. Banks think that’s a swell idea.
The attorneys general of California and more than a dozen other states think it’s a foolish move.
Want to guess which way President Trump will…
The head of Guatemala’s disaster management agency is facing calls to step down just days after the Fuego volcano erupted, leaving nearly 100 people dead and scores more missing.
CNN.com – RSS Channel – Regions – Americas
Gina Haspel, President Trump’s pick to lead the CIA, admitted the agency should not have conducted its enhanced interrogation program.
A Russian state-owned news agency says its office in the Ukrainian capital has been raided and that at least one of its correspondents has been detained for questioning.
The National Security Agency more than tripled the number of phone and text records that it collected of Americans in 2017 over 2016, according to a new government report . The spy agency collected 534 million records from telecommunications providers such as Verizon and AT&T in 2017 as compared with 151…
If the stakes weren’t so high, it would be incredibly fun watching financial firms and their Republican allies repeatedly make the case that the Consumer Financial Protection Bureau is a rogue agency determined to undermine capitalism, democracy and the American way of life.
My absolute favorite…
The Australian Taxation Office (ATO) has been researching how to formulate regulatory guidelines for taxing cryptocurrencies recently. This week the ATO is seeking input from Australian residents concerning how the country should tax digital assets.
The Australian Taxation Office is Looking for Public Opinion Concerning Cryptocurrency Tax Implications
Over the past few months, the ATO has been drafting taxation guidelines for cryptocurrencies like bitcoin. The Australian tax agency has already described how it wants citizens to record all of their digital asset transactions and document the Australian dollar value amount at the time of each transaction. The ATO’s “Seeking Input” letter details its recently defined descriptions “resulted in queries from the community about how to approach specific tax events.” In order to deal with these requests, the ATO is asking for public opinion concerning crypto-tax laws.
“We have launched a community consultation to help us understand practical issues experienced when complying with cryptocurrency tax obligations,” explains the ATO.
We’ve timed this consultation to coincide with an update to our website, which should address some of the feedback we have received to date about our cryptocurrency guidance.
Public Feedback Must be Submitted by April 20
The recent letter follows the ATO’s creation of a special task force dedicated to tracking and identifying cryptocurrency transactions. Furthermore, the tax agency has partnered with the Australian Transaction Reports and Analysis Centre (Austrac) alongside other government bureaus. At the time the ATO detailed the agency’s strategy is meant for people to understand the “tax implications of cryptocurrency arrangements.”
This week the ATO’s letter explains it looks forward to hearing from the public.
“We’re eager to hear your feedback about cryptocurrency and its tax implications as the technology may impact how business operates in the future,” the agency adds.
Australian citizens who want to participate in giving public feedback can do so until April 20, 2018. Those who wish to make comments can visit the ATO’s consultation of substantiating cryptocurrency taxation events webpage.
What do you think about the ATO asking for public feedback concerning crypto-tax implications? Let us know what you think in the comments below.
Images via Pixabay, and the ATO.
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