Japan Virtual Money Business Association hopes to adopt 20% of the cryptocurrency separate taxation and small tax exemption system

According to Crypto.Watch, the Japan Virtual Money Business Association (JCBA) announced the 2020 tax reform request on July 24th at the Association's Tax System Review Committee. In view of the fact that the “Funding Algorithm” and the “Financial Commodity Trading Law Revised Edition” plan promulgated by the Japanese Parliament came into effect in April 2020, the virtual currency (encrypted assets) will be within the framework of the “Golden Business Law”. The request made by the association focuses on the following three points: 1. A 20% declaration and separation tax on crypto-equity derivatives transactions, and the loss from the previous year can be related to the amount of income from derivatives transactions in the three years after the start of the second year. Carry forward deduction. 2. 20% of the profits from the transaction of encrypted assets are subject to separate taxation. The loss of the previous year can be carried forward and deducted from the amount of income related to the encrypted assets in the three years after the start of the second year. 3. If the profit earned by the cryptocurrency asset transaction is less than 200,000 yen a year, a small tax exemption system is adopted. According to previous news, JVCEA submitted a 2020 tax reform request to the Japan Financial Services Agency on July 19. Require cryptocurrency reporting to separate taxation, establish small tax exemptions, deduct profits and losses, and carry over taxes.