RetireJapan

Ax6isB wrote: ↑Tue Jan 12, 2021 5:37 am A while back I discovered Grayscale Bitcoin trust as a relatively easy vehicle for investing in crypto. The bitcoin ticket is gtbc. Looks like they have a ticker for Ethereum as well. Not for the faint of heart but could be a worthwhile hedge to consider. Worth noting that their fees are high (2%).

TokyoWart wrote: ↑Tue Jan 12, 2021 7:07 am I'm not sure if it's possible in Japan yet but in the US I think owning Bitcoin in your Paypal account gives you a closer match to the actual asset price.

TokyoWart wrote: ↑Tue Jan 12, 2021 7:07 am
I haven't taken the leap into Bitcoin but I've been following the story because it's been an interesting issue before the US SEC. The Grayscale Bitcoin trust has an additional disadvantage besides the 2% management fee. It doesn't really match the price of Bitcoin. Although the difference varies with market interest in Bitcoin, GBTC typically trades at a roughly 20% premium to the price of Bitcoin so it's like buying a stock fund at a 20% premium to asset value. I'm not sure if it's possible in Japan yet but in the US I think owning Bitcoin in your Paypal account gives you a closer match to the actual asset price. One of the arguments being made to the SEC that it should approve a Bitcoin ETF is that GBTC is a very poor instrument for retail investors. This is all theoretical for me (never owned Bitcoin and still don't know what it will do) but the saga of the SEC's very slow review of Bitcoin ETF's is an interesting story to me so I'm following it.

Viralriver wrote: ↑Thu Jan 14, 2021 1:48 am Would this then require filing a 確定申告 at the end of the year?

adamu wrote: ↑Thu Jan 14, 2021 6:26 am

Viralriver wrote: ↑Thu Jan 14, 2021 1:48 am Would this then require filing a 確定申告 at the end of the year?

Yes. If you sell crypto or convert one form of it to another, that's a taxable event and you are supposed to declare it.

However, I believe there is a 380,000 yen allowance. So you only have to declare if you made more than 380k. But don't quote me on that - I just did a quick search.

This article looks helpful (Japanese): https://advisors-freee.jp/article/categ ... l-01/9456/

Chris wrote: ↑Thu Jan 14, 2021 11:26 am

adamu wrote: ↑Thu Jan 14, 2021 6:26 am

Viralriver wrote: ↑Thu Jan 14, 2021 1:48 am Would this then require filing a 確定申告 at the end of the year?

Yes. If you sell crypto or convert one form of it to another, that's a taxable event and you are supposed to declare it.

However, I believe there is a 380,000 yen allowance. So you only have to declare if you made more than 380k. But don't quote me on that - I just did a quick search.

This article looks helpful (Japanese): https://advisors-freee.jp/article/categ ... l-01/9456/

I think the 380,000 JPY is your annual income tax free allowance that every resident is entitled to. The site you linked also mentioned 330,000 JPY resident tax free allowance too. The website also seems outdated because the income tax free allowance increased to 480,000 JPY and the Resident tax free allowance increased to 430,000 JPY in 2020.

If you're working and earning a living, chances are you earn over 480,000 JPY (and 430,000 JPY) per tax year. So like FX gains you still have to declare all crypto currency gains as miscellaneous income.

The website mentions

"③専業主婦や学生など
仮想通貨による利益（所得）と他の所得が38万円を超えた場合
38万円を超えると所得税を払わなければならないだけでなく、扶養の配偶者控除からも外れることになります。なお、所得税は38万円以上で申告が必要ですが住民税は33万円以上で申告が必要になります。"

That is kind of referring to people they expect to not have an income such as full-time housewives or students.

There is an extra 200,000 JPY income tax allowance for those with employers who file their employees end of year tax adjustments for them. But that is only for income tax. The resident tax return still need to be filed.

To clarify--"gains" is referred to any taxable event, which includes the act of simply sending the crypto to another wallet, right? Or is it on trades?

TokyoWart wrote: ↑Fri Jan 15, 2021 12:38 pm

To clarify--"gains" is referred to any taxable event, which includes the act of simply sending the crypto to another wallet, right? Or is it on trades?

I don't think a transfer would be a taxable event. Taxable events happen when you exchange one thing for something else. The link below is about US taxes but even in Japan if you transfer stock securities from one brokerage firm to another you have not created a taxable event and I would think the same applies to crypto here:

https://tokentax.co/guides/do-you-need- ... pto-taxes/