Average value of undeclared crypto in Japan dropped 19% in 2022

cointelegraph.com:

According to Japan’s 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 citizens’ crypto holdings based on their tax declarations for 2022. In 548 cases, the agency found tax violations, 35% more than in 2021, which had 405 crypto tax evasion cases. It should be noted that the number of investigations also increased from 444 in the previous year.

However, the average value of undeclared crypto holdings dropped from 3,659 Japanese yen (around $245,000) in 2021 to 3,077 yen ($206,000) in 2022.

In the summer of 2023, Japanese regulators, including the NTA and the Financial Services Agency (FSA), confirmed that citizens would be spared from a capital gains tax 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 “swiftly transpose” the Crypto-Asset Reporting Framework (CARF), a new international standard on the automatic exchange of information between tax authorities, into their domestic law systems.

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