Crypto assets and tax investigations The National Tax Agency struggles with calculating crypto asset profits and losses

2025/07/30 10:00
Junya Izumi
SHARE
  • sns-x-icon
  • sns-facebook-icon
  • sns-line-icon
Crypto assets and tax investigations The National Tax Agency struggles with calculating crypto asset profits and losses

Difficulty in calculating cryptocurrency profits and losses

In the previous article, we mentioned that the anonymity and decentralization of crypto assets are a source of concern for tax authorities, but in fact, tax investigators in the field are also troubled by the difficulty of calculating profits and losses from crypto assets.

Income tax on crypto asset transactions is calculated by first calculating the profit and loss from crypto assets, and then calculating the appropriate tax amount based on this in accordance with the rules of the Income Tax Act. However, accurate profit and loss calculations are difficult in cases where transactions are made using overseas exchanges, DEXs (decentralized exchanges), or private wallets.

The steps for calculating profit and loss using crypto asset profit and loss calculation software are as shown in the figure. When calculating profit and loss, various problems can be encountered at each of these stages ① to ④.

The article is for members only. Please sign up to continue reading.

SHARE
  • sns-x-icon
  • sns-facebook-icon
  • sns-line-icon
Side Banner
Side Banner
日本暗号資産ビジネス協会 Japan Cryptoasset Business Association
MAGAZINE
Iolite Vol.15

Iolite Vol.15

September 2025 issueReleased on 2025/07/30

Interview Iolite FACE vol.15 Avery Chin, co-founder and CEO of Aptos Labs PHOTO & INTERVIEW Tester Special feature: "How to master workplace relationships! Using MBTI", "Riding the waves of the 'first year of AI agents'!", "Is Bitcoin the savior of companies? The forefront of treasury strategies", "Management strategies learned from villains" Crypto Journey: "The intersection of Web 3.0 and social contribution" Interview with Gracie Chen, CEO of Bitget Series: "Expert perspectives on interpreting the fluctuating cryptocurrency market" Virtual NISHI Series: Tech and Future Toshinao Sasaki, etc.

MAGAZINE

Iolite Vol.15

September 2025 issueReleased on 2025/07/30
Interview Iolite FACE vol.15 Avery Chin, co-founder and CEO of Aptos Labs PHOTO & INTERVIEW Tester Special feature: "How to master workplace relationships! Using MBTI", "Riding the waves of the 'first year of AI agents'!", "Is Bitcoin the savior of companies? The forefront of treasury strategies", "Management strategies learned from villains" Crypto Journey: "The intersection of Web 3.0 and social contribution" Interview with Gracie Chen, CEO of Bitget Series: "Expert perspectives on interpreting the fluctuating cryptocurrency market" Virtual NISHI Series: Tech and Future Toshinao Sasaki, etc.