Reading time: ~ 1 m
The National Tax Agency of Japan has updated the list of frequently asked questions about cryptocurrencies, adding concepts such as staking and cryptocurrency lending. However, for now, there are no non-fungible tokens (NFT) and airdrops on the list, a sign that these transactions will not be taxable at this time.
It is also noted that when calculating taxes that must be made in yen, it is important for crypto investors to fix the market price of coins at the time of their purchase.
According to the official information, the same rules should apply to staking and lending as to cryptocurrency mining. Mining is considered to be the “purchase” of coins, therefore, tax calculations must be made at the time of their accrual.
If miners subsequently sell their coins at a higher market price, their profits must be declared in yen.
Staking and lending must also be taxed in the same way: when coins are staked or lent, the taxpayer must fix the market price at the time of the contract. When the contract expires with a profit, it is necessary to declare the “difference between the sale price and the purchase price”, which is taxable.
Due to the fact that staking and lending are often carried out through crypto exchanges, trading platforms can also keep track of the relevant information.
#Japanese #Tax #Service #Updates #Staking #Lending #Rules