RetireJapan

http://www.nta.go.jp/taxanswer/shotoku/1524.htm

[平成29年4月1日現在法令等]

 ビットコインは、物品の購入等に使用できるものですが、このビットコインを使用することで生じた利益は、所得税の課税対象となります。

 このビットコインを使用することにより生じる損益（邦貨又は外貨との相対的な関係により認識される損益）は、事業所得等の各種所得の基因となる行為に付随して生じる場合を除き、原則として、雑所得に区分されます。

(所法27、35、36)

From what I can tell, this says that profits from Bitcoin are counted as Income, specifically miscellaneous income.

This is about as bad as it could be, because it can put you up into a higher band and mean you end up paying more tax overall.

This article looks like a good summary, but I've not had time to sit down and try to read it properly yet:

http://president.jp/articles/-/23637

Yeah, it seems it's counted as income.

I had a quick read of the article. Supposedly in the worst case scenario (if your income is over 40 million yen) your total taxation amount can be over 50%.

However if you earn a more modest total income the tax rates are more lenient. 23% for less than 9,000,000 yen. If I made that much in a year I wouldn't mind paying 23% tax. I don't think it's overly high. But, if you're already on a large salary, trading bitcoin isn't the best way to invest (unless you make a profit so large it outweighs the tax disadvantages).

The thing that sucks is that losses can't be deducted against other forms of income.

From what I understand, it also confirms that profits from trading currencies pairs are also taxable. Which also sucks.

Mmm, according to https://en.wikipedia.org/wiki/Capital_gains_tax#Japan:

"Starting in 2009, losses can alternatively be deducted from dividend income declared as "Separate Income" since the tax rate on both categories is equal (i.e., 20% temporarily halved to 10%)"

Does 雑所得 translate to "Separate Income" above? In that case it would seem like the rate is the same as capital gain, i.e. 20% flat.

I'd like to know as well since I have some capital losses to offset and a dangling Bitcoin, so...

N00bster wrote: ↑Wed Nov 29, 2017 8:56 am Mmm, according to https://en.wikipedia.org/wiki/Capital_gains_tax#Japan:

"Starting in 2009, losses can alternatively be deducted from dividend income declared as "Separate Income" since the tax rate on both categories is equal (i.e., 20% temporarily halved to 10%)"

That's talking about capital gains on stocks. The tax office quote I posted above says that Bitcoin profits are treated as income, not as capital gains. So the wikipedia article does not apply to bitcoin, I think.

Entertaining write-up of Bitcoin as an investment: http://jlcollinsnh.com/2017/12/03/how-t ... in-graham/

adamu wrote: ↑Tue Dec 05, 2017 4:23 am Entertaining write-up of Bitcoin as an investment: http://jlcollinsnh.com/2017/12/03/how-t ... in-graham/

That is the most convincing thing I have read so far

Bitcoin is becoming a bubble. It wasn't so bad before but going into 2018 I can see it getting really crazy. That's why I'm diversifying into start-ups with real, working applications. The four I'm currently in are Omisego (p2p payments), Power Ledger (p2p selling and buying of solar energy etc.), Horizon State (a platform for trustless voting - think national elections etc.) and LockChain (think AirBnB but 20% cheaper due to there being no middleman). As opposed to Bitcoin, they all have working products, plans, brilliant people and active engagement with their communities. Much more comforting than holding BTC in my opinion.

If you're holding BTC, now may be a good time to take some profit and put it into ETH, or some other large cap

One thing's for sure, we're watching history in the making.

https://en.wikipedia.org/wiki/Tulip_mania

At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsworker.

We need to be into the tens of millions (of yen) to beat the tulips.

The Australian Stock Exchange is migrating to blockchain.

https://www.bloomberg.com/news/articles ... lans-shift