Japan scraps consumption tax on cryptocurrencies

The new changes are the result of a 2017 tax reform proposed and supported by the Japanese Liberal Democratic Party and Komeito Party. The new exemption will come into effect starting July 1, 2017.

The transfer of virtual currencies will be treated as non-taxable transactions as virtual currencies were defined as a means of payments.

The proposed amendment was passed by the Japanese National Diet on March 27, 2017. Shortly after, the country’s Financial Services Agency authorized cryptocurrencies to be used as a form of payment.

Australia is taking a similar approach to cryptocurrencies, as the government decided to eliminate double Goods and Services taxation after July 1, 2017, as it can be seen in the country’s 2018 Budget.

Japan and Australia have announced a co-operative framework for developing innovation withing the financial service industries of both countries. The partnership entitles both parties to share important information on new financial technologies, including cryptocurrencies.