Once you have confirmed your profits from using the overseas cryptocurrency exchange Bybit, you will be required to calculate your profits and losses from your trading history and pay taxes through your tax return, so we will explain how to do this. However, it is very painful to have your profits taken as tax even though you have made them. Therefore, we have listed the items that are recognized as expenses in cryptocurrency trading.
List of items that can be used as expenses
We have compiled a list of items that can be expensed at overseas exchanges. It depends on the amount, but if you make a profit from rewards such as Bitcoin, it can be troublesome if you are found out by the National Tax Agency for not reporting it. The key point is whether or not all of these items can be expensed depends on whether they were used in virtual currency transactions. The cost of books to gain investment knowledge in virtual currency transactions can be recorded as a necessary expense. In any case, you need evidence first, so be sure to keep your receipts. Log in and click on the following points to check.
Seminar fee, transportation fee, accommodation fee
If you participate in a virtual currency-related event or seminar, there will be seminar participation fees, domestic accommodation expenses, and other transportation expenses. These expenses can be claimed as expenses, which is a benefit, so we recommend that you claim them as expenses. If you are unsure, consider asking a tax accountant for your company or individual. Please note that paying taxes requires knowledge.
commission
Mining fees incurred in virtual currency transactions can be recorded as expenses. Expenses include withdrawal fees, deposit fees, and even transaction fees. There are cases where these items have been recorded as expenses, so please consult a tax accountant first regarding the tax system.
Consulting fee
Regarding virtual currency, if you are doing consulting etc., the expenses used for these matters may also be claimed depending on the situation, so please keep receipts etc. as evidence to accurately understand the total amount. Let’s do it.
computer price
If you use a PC to trade virtual currency overseas, you can deduct it as an expense, so if possible, obtain documents such as receipts and leave evidence as a countermeasure against tax audits from the authorities. According to the classification criteria, the total amount must be less than 100,000 yen. If the value actually exceeds 100,000 yen, it will be subject to depreciation based on the classification.
smartphone price
In the case of virtual currency exchanges, smartphone apps have become popular overseas, so if you trade using a smartphone, you can deduct it as an expense. In this case, the handling will differ depending on whether the amount is over or under 100,000 yen. You can calculate it and deduct it as an expense, so consult with a tax accountant. Customers can view and manage their transaction history and calculate costs using the functions in the operating company’s menu.
Computer peripherals
If you are using overseas cryptocurrency exchanges such as Binance or Bybit to trade on a computer, choosing spot trading or derivatives, you can calculate and deduct even small amounts of peripherals such as mice, keyboards, and printers. Once you start, keep receipts and other evidence as a measure against tax audits. Check the latest screen for losses and check detailed orders and history from files, etc.
Rent, utility bills, water bills
This is where it becomes very difficult to draw the line. Basically, it is recognized as a necessary expense, but even if it is a small amount or a large amount, you can only claim the amount used for transactions at overseas virtual currency exchanges, so let’s do the calculation first. Gas and water are generally difficult to deal with as they have no direct relationship with virtual currency trading. Leave evidence in case of a tax audit.
Items that cannot be covered as necessary expenses
It is a virtual currency that anyone can easily invest in, but of course, if you earn money from trading, you will have to file a tax return. Profits are subject to tax when they are made. Since you are making money from investing, you will need to deal with it in the same way as when you make money from stock or currency trading. Please be aware that if you leave it as it is, you run the risk of being investigated by the tax office and being flagged and subject to additional tax, so please be aware that this can be very dangerous. If the failure to report is too serious, it may be directly picked up by the media, published, or made public.
Not reporting is a risk
Income earned from buying and selling virtual currency spot or futures is miscellaneous income. Of course, profits from virtual currencies are subject to tax, just like earnings from stocks and foreign exchange. Some people who have made profits from virtual currency trading may be thinking of avoiding paying taxes by not filing a final tax return, but they will definitely be found out as the tax office will investigate soon. Masu. Virtual currency exchanges have transaction history, so the tax office will know. Also, please note that various taxes are levied depending on your income, such as residence tax and income tax.
Is a final tax return necessary?
Income earned from virtual currency is considered miscellaneous income. Of course, profits from virtual currencies are subject to tax, just like earnings from stocks and foreign exchange. Some people who have made profits from virtual currency trading may be thinking of avoiding paying taxes by not filing a final tax return, but they will definitely be found out as the tax office will investigate soon. Masu. Virtual currency exchanges have transaction history, so the tax office will know.
When to generate income from virtual currency
Just buying and holding virtual currency will not generate profits, but if you sell it, you may generate profits depending on the selling price. In addition, you may be able to make a profit when exchanging your current virtual currency for another virtual currency. Those who use the Internet may earn profits when purchasing products and services using virtual currency, such as when shopping online or at physical stores. Income will also be generated at this time.
What happens when unpaid virtual currency taxes are discovered?
If you make profits from virtual currency transactions but do not pay taxes, you will be subject to additional tax. The main types include undeclared tax, delinquent tax, and heavy added tax, and in the worst case scenario, you may be subject to criminal penalties. Be especially careful in the case of heavy additional tax, as this includes cases of concealment, under-reporting, and false declarations.
コメント