Income tax

Watch out for tax implications when gifting cryptocurrency or selling it below market value!

When you give cryptocurrency to family members or controlled companies, or sell it for much less than its worth, you need to be aware of important tax consequences. Japanese tax law has specific rules about how gifts and below-market sales of inventories are taxed. These rules also apply to cryptocurrency, requiring you to calculate taxes as if you had sold it at full market value. Tax Rules for Gifts and Below-Market Sales The tax...

Income tax

How to Calculate Personal Income Tax in Japan

Q. How is Personal Income Tax Calculated in Japan? A. Personal income tax in Japan is determined by applying a tax rate to the tax base, which is the income earned by an individual during the year. In other words, the amount of income tax is basically calculated by applying a tax rate to the amount remaining after subtracting deductions and exemptions from “gross income”. In practice, further tax credits are applied to the...