Re-post – Japan tax on trading account – base taken and tax value

Dear all,
Sorry re-post I do not see it

Couple of months ago I have started trading
I have already make some profits and as we are under tax filing period I was wondering which value I have to declare and on which I will pay taxes

Example: trading gain of 20kUSDT
Is it this base I have to declare and on which I have to pay taxes
Or I have to declare this gain but pay taxes on what I "pocket" (transfer to by bank account in JPY)
Or it is different?

By the way, I should be free to withdraw my profit with no blocage from platform for such reason "as you need to pay your taxes first", a right?

Really need you advise as I think I may have been scammed

Thank you in advance

by Kaly-G33

2 comments
  1. >we are under tax filing period

    I don’t think this is correct. Generally for individuals tax filing is from January/February to March.

    >Example: trading gain of 20kUSDT Is it this base I have to declare and on which I have to pay taxes Or I have to declare this gain but pay taxes on what I “pocket” (transfer to by bank account in JPY) Or it is different?

    Based on your use of USDT I assume you are dealing with crypto. You have to pay taxes on the gain in each trade, even if it doesn’t involve fiat currency. E.g. if you buy some ethereum with yen, then exchange it for bitcoin, that exchange is a taxable event in Japan. Essentially the tax office views it as if you sold the ethereum for yen, then bought bitcoin with the yen. (Same goes if you bought the initial etherum with dollars: for Japan they view it as if you exchanged your dollars for yen, then bought the crypto with those yens.) Whatever your gains are in yen, that is taxable. (IIRC for crypto it is treated as misc income and you have to file taxes and it gets taxed at your marginal tax rate.) Whether you withdraw it into your account or not doesn’t matter.

    >By the way, I should be free to withdraw my profit with no blocage from platform for such reason “as you need to pay your taxes first”, a right?

    Yes, you should be absolutely free to withdraw, and this 100% sounds like scam. Any real investment platform (crypto or otherwise) would not ask you to pay extra taxes to withdraw money. They would either automatically deduct taxes then give you the rest of the money (e.g. for stocks, funds, ETFs held in taxable accounts at a Japanese brokerage this happens) or just give you all the money and let you handle your taxes.

    TLDR: you are very likely being scammed, and cut your losses, learn your lesson, and move on. And in no situation give them any more of your money

    (edit: fixed the formatting of the quotes)

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