After the crypto tax system in South Korea, US. and UK. in the first part of this article, here are the taxes in Switzerland, Germany, and Japan.
Switzerland identifies cryptocurrency by the nature of cash or equivalent. Switzerland does not charge capital gains taxes. Because it does not see capital gains as capital gains for the sale of virtual currency.
If a person receives wages in cryptocurrency or self-employed people receive virtual currency at the time of receipt, the value of the virtual currency at the time of receipt converts into Swiss francs. And an income tax levies on that amount.
However, for transactions involving professional investors, income taxes should be paid by classifying the gains and losses as a form of income, and for individuals who are not professional investors, the holdings of virtual currencies are classified as assets, and property taxes should be paid.
The cryptocurrency tax in Germany
Meanwhile in Germany, a single 25 percent tax on capital gains will apply if the transaction volume exceeds 600 euros. And a total 26.375 percent tax will apply with the addition of social solidarity tax.
However, individual investors who own cryptocurrency for more than a year will receive a capital gains tax exemption. If the company purchases cryptocurrency, it is immediately subject to taxation if a profit or loss occurs. Regardless of the length of its possession.
The cryptocurrency tax in Japan
Japan is inclusive of its profits, and income taxes are levied on profits generated by cryptocurrency, combined with other incomes. In September 2017, Japan’s National Tax Service posted on its website of an opinion. It said that capital gains generated by using cryptocurrency would be classified into other income. T
he tax rate will be subject to a progressive tax rate of 5 to 45 percent depending on the amount of income. And up to 55 percent of taxes can be levied in addition to 10 percent in local taxes.
