According to Japanโs tax authorities, the average value of undeclared income in crypto fell by 19% in 2022.
On Nov. 24, the Japanese National Tax Agency (NTA) released its yearly summary of tax investigations. The 13-page document also contains data on the probe into crypto tax evasion.
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The NTA initiated 615 investigations into citizensโ crypto holdings based on their tax declarations for 2022, up from 444 in 2021. In 548 cases, the agency found tax violations, a 35% increase over 2021, which had 405 crypto tax evasion cases.
However, the average value of undeclared crypto holdings dropped from 36,590,000 Japanese yen (around $245,000) in 2021 to 30,770,000 yen ($206,000) in 2022.
In August, Japanese regulators, including the NTA and the Financial Services Agency (FSA), confirmed that citizens would be spared from a capital gains taxย on unrealized gains in crypto. That means they will not have to pay around 35% of taxes on those crypto assets stored without trade operations during the fiscal year.
This month, Japan joined a list of almost 50 nations that pledged to โswiftly transposeโ the Crypto-Asset Reporting Framework โ a new international standard on the automatic exchange of information between tax authorities โ into their domestic law systems.
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