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Japan eyes to eliminate tax on buying virtual currencies

Adrian M. Reodique | Oct. 25, 2016
It will likely be implemented by spring next year.

Japan is planning to eliminate the tax on buying virtual currencies by spring next year, according to an article by Nikkei Asian Review on 12 October 2016.

"Discussions between the Finance Ministry and Financial Services Agency are expected to lead to a formal decision after talks by a ruling-coalition tax panel at the end of the year," Nikkei reported.

The revised fund settlement law defines virtual currency as an "asset-like values" that can be used as a mode of payment. Nikkei noted the Finance Ministry is expected to use this as a grounds to remove the consumption taxes when buying virtual currencies. 

The article said that if the taxes are eliminated, it will likely accelerate the growth of bitcoin and other virtual currencies as an alternative to traditional money. Currently, Japan levies 8 percent consumption tax on bitcoins. 

 

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