Japan to Drop Bitcoin Sales Tax

December 9, 2016 Taxation in Japan

bitcoin tax in JapanTOKYO – Japan’s market for Bitcoin could recieve a long-awaited boost, as the government looks to drop a tax on the sale of crypto-currencies.

According to information released by CoinDesk, an international news outlet about crypto-currencies, Japan may soon drop its tax on the sale of Bitcoin and other crypto-currencies.

Currently, the purchase of crypto-currency in Japan is subject to a special 8 percent sales tax.

The drop in the tax was apparently detailed in a document released on December 8th by the leading Liberal Democratic Party and the Komeito party.

It is expected that if the tax is enacted, the government would institute a grace period of one months to allow currency retailers to adjust to the changes prior to the tax being dropped entirely.

It is expected that the removal of the tax will encourage greater use of Japanese crypto-currency marketplaces.

The original proposal to drop the tax was raised in 2015, as the government looked at ways to improve the market and to gather greater amounts of information from the marketplace, following the collapse of the Mt Gox, a bitcoin-exchange whose collapse led to the loss of millions in customers’ funds.