The Average Value Of Unreported Revenue From Crypto In Japan Drops 19% In 2022

Crypto illustration. (photo: x @bitcoin)

JAKARTA - According to the Japanese tax authorities, the average unreported value of revenue from crypto assets fell 19% in 2022. On November 24, the Japan National Tax Agency (NTA) released its annual summary of tax investigations. The 13-page document also includes data on crypto tax evasion investigations.

NTA started 615 investigations into citizens' crypto assets based on their tax reports for 2022, up from 444 in 2021. In 548 cases, the agency found tax violations, an increase of 35% compared to 2021 which has 405 cases of crypto tax evasion.

However, the average unreported value of crypto assets fell from 36,590,000 Japanese yen (approximately IDR 3.7 billion) in 2021 to 30,770,000 yen (IDR 3.1 billion) in 2022.

In August, Japanese regulators, including the NTA and the Financial Services Agency (FSA), confirmed that citizens would avoid a capital gains tax on unrealized profits from cryptocurrencies. This means they don't have to pay about 35% of taxes on crypto assets that are stored without trading operations during the fiscal year.

This month, Japan joined a list of nearly 50 countries pledging to " quickly transpose" a new international standard Crypto Asset Reporting Framework on automatic information exchange between tax authorities into their domestic legal systems.