Japan’s National Tax Agency has published a guideline on the taxation of sales of non-fungible tokens (NFTs) and the profits earned by crypto and blockchain gamers.
Namely, the tax in question that is to be applied to NFT transactions is a consumption tax, which is Japan’s equivalent of VAT.
Japan's Tax Agency publishes guidelines for taxing NFT sales and crypto gaming profits
Public
Metaverse
Author: Kristina Dosen
Category:
General information
Views:
581
Content accuracy validation date:
24.01.2023
Content accuracy validation time:
08:55h
Content
According to the guideline, NFTs in Japan qualify as a form of intangible property, and NFT transactions in blockchain-based games will be taxed based on the total amount of income at the end of the year. The guideline also provides that no tax will be applied if the asset is not exchanged outside the game or if the asset has been stolen due to unauthorized wallet access. Lastly, creators of NFTs will also be taxed whenever they sell the NFTs to Japanese consumers and gain profits.
These guidelines are not yet implemented into the Japanese tax code or any other relevant laws. However, they are intended for use by local or central tax authorities and NTA officers until parliament amends the relevant legislation.
Other news from Metaverse
Top 5 European Crypto Exchanges in 2024
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Many European crypto exchanges operate under different regulations and offer various features and services. Below are the top 5 crypto exchanges in Europe for 2024, based on their popularity of usage, reputation, security, and functionality, not in order. OKX Bybit Binance Kraken Coinbase. OKX is a Seychelles-based platform that offers trading, earning, and growing crypto with 43+ fiat cu... Read more
What is crypto-bridging, and how does it work?
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Crypto-bridging is the process of connecting different blockchains and enabling the exchange of cryptocurrencies, digital assets, and data across them. Crypto bridges allow different blockchain networks to communicate with one another and exchange assets and information. But how can crypto-bridging be of help to currency owners? It can be of help to owners of these currencies because it enhances... Read more
How bitcoin core v26.0 enhances the security and functionality of the Bitcoin Network
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Cryptocurrencies are digital currencies that use cryptography to secure and verify transactions and control the creation of new units. Bitcoin is a type of digital currency that operates on a decentralized network without the need for intermediaries like banks or governments. Bitcoin transactions are recorded and verified on a public ledger called the blockchain, which ensures security and transpa... Read more
New document was uploaded: Tax treatment of mobile game sales and in-game purchases
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Today, the video game industry is worth more than music and video streaming combined, with a value of $130 billion in 2018 and expected to become a $300 billion industry by 2025. With the rise of mobile games and easy access to those games through platforms such as Google Play or the App Store, the gaming industry has shifted from traditional retail of physical units to digital distribution and ap... Read more
Montenegro will introduce a law on cryptocurrency.
Public
Author: Kristina Dosen
The Europe Now Movement (Pokret Evropa Sad) has announced that it will work with the world's biggest experts in the field of cyber security on a law that will protect the citizens of Montenegro and their capital from potential fraud in the crypto world. The president of the Europe Now Movement said that digital scams like Cheil Worldwide, Bitconnect, and more recently Terra were only stopped when... Read more
The EU's DAC8 proposal strengthens tax enforcement and reporting in the digital economy.
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
The European Union (EU) has put forward the DAC8 proposal, aimed at enhancing the detection and prevention of tax fraud, evasion, and avoidance. This legislative initiative aims to improve the ability of member states to combat these financial crimes. Additionally, the Organization for Economic Co-operation and Development (OECD) is working on a global crypto-asset reporting framework (CARF). Thes... Read more
European Union: VAT Committee publishes guidance on VAT treatment of NFTs
Public
Author: Kristina Dosen
The European Union (EU) VAT Committee has published a working paper on NFTs, which sets out the current NFT ecosystem landscape and provides qualifying definitions of NFTs and related concepts that are currently undefined in existing EU regulations. The working paper also provides guidance on the VAT treatment of NFT transactions, which must be analyzed on a case-by-case basis to determine whether... Read more