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Japanese tax panel releases new guidelines on crypto staking and lending, except NFTs

The National Tax Agency of Japan has revised its crypto FAQs, including topics such as staking and crypto lending. 

However, the body has made no mention of non-fungible tokens (NFTs) or token airdrops, implying that NFT trading and airdrops are not currently taxable.

Revision of FAQs

The organization (known as the NTA) revised its FAQs on December 22 to include new sections about “earnings earned through” staking and lending coins. 

It stated that when doing tax computations – which must be done in fiat yen – crypto investors should keep track of the market price of coins at the time of purchase.

The revised FAQs explain that the same rules should apply to staking and lending as they do to crypto mining.

The NTA considers mining to be “acquiring” coins, Because of this, all tax computations have to be made when miners receive their coins, using market prices to calculate their fiat yen value.

Miners must announce their profit (in yen) if they sell their coins for a higher market price.

Staking and lending will be taxed

The NTA noted that staking and lending will be taxed the same way: when coins are staked or lent, a taxpayer must record the market price at the time the contract is struck. 

The “difference between the sale price and the purchase price” must be declared and taxed after the transaction is concluded, resulting in “profits.”

As a result, according to the organization, individuals who fail to record market values at the time may face complications later on when they are required to file tax returns. 

It was pointed out that because staking and lending are frequently done through crypto exchanges, trading platforms may maintain track of the required data.

 

Image courtesy of Cointelegraph News/YouTube

The post Japanese tax panel releases new guidelines on crypto staking and lending, except NFTs appeared first on BitcoinerX.

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Source: https://bitcoinerx.com/blockchain/japanese-tax-panel-releases-new-guidelines-on-crypto-staking-and-lending-except-nfts/

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