Cryptocurrency

Definition of Cryptocurrency in the Income Tax Act

Definition of Crypto Assets and Exclusion from Inventory The Japanese Income Tax Act contains specific provisions related to cryptocurrencies. Since these provisions specifically target cryptocurrencies, the definition of the term “cryptocurrencies” is critical to determining when these rules apply. In this context, Article 2, Paragraph 1, Item 16 of the Income Tax Act, which defines inventory, stipulates the following: For income tax purpose, inventories refer to goods, products, semi-finished products, work in progress, raw...
Cryptocurrency

Cryptocurrency for Tax Payments: Innovation or Overcomplication? 

1. Tax Payment Using Cryptocurrency While Japan has yet to embrace this system, several U.S. states have introduced systems enabling taxpayers to pay their taxes using cryptocurrency. This move is both intriguing and innovative, potentially attracting crypto-friendly businesses and establishing these states as forward-thinking hubs for digital currencies. Additionally, it offers a unique convenience to taxpayers with substantial cryptocurrencies, letting them pay their taxes directly in cryptocurrency without converting to fiat, saving time and...