Why Nostr? What is Njump?
2023-03-23 07:04:11
in reply to

wtogami on Nostr: Japan's tax laws are perhaps the most hostile to Bitcoin adoption in the world. The ...

Japan's tax laws are perhaps the most hostile to Bitcoin adoption in the world. The bank regulator FSA and industry has tried for years to get the NTA to cooperate on reform but it seems impossible.

Unfair tax laws:
* 55% rate in the etc undefined income category. This part I don't mind personally. If you choose to live somewhere due to the quality of life you pay for it.
* You pay taxes on gains but you can't carry forward losses to future tax years like you can for other investment losses. This led to some strange situations where shitcoin traders went bankrupt due to paper profits and losses happening on separate years. This is the most broken and unfair part of their laws today relative to carry forward or even backwards allowed for Japanese equity trades.
* Average cost basis - this is significantly worse than FIFO, LIFO, or lot selection methodologies allowed like in America. I doubt this can ever be fixed in Japanese law because average cost basis is also how they tax stock trading capital gains.

A few bitcoin devs considered moving to Japan in past years but decided against it almost entirely because of these tax laws. A few Bitcoiners also left Japan over this.
Author Public Key
npub1pfezegswrn8lpt0aerp2hvyhj4lsuzln9kcccs5p7qch2m2sawxsxcelvf