The calculation of profits and losses is complex, with investment amounts mostly between 1 to 5 million yen──Cryptact conducted a survey on tax returns for cryptoassets | CoinDesk JAPAN

On April 1, PAFIN, which operates the automatic profit and loss calculation service “Cryptoact” for crypto assets (virtual currency), announced the results of a survey on crypto asset tax returns conducted for users.

The survey was conducted via an online questionnaire from March 14 to 23, with 1,477 respondents who are experienced in cryptoasset trading registered for Cryptact’s newsletter. 85% of the respondents were in their 30s to 50s, and males accounted for 82% of the respondents.

Cryptact, used by over 150,000 people in Japan, supports automatic profit and loss calculations for domestic and international exchanges, NFTs, and DeFi (decentralized finance). The company aired its first television commercial during the 2024 tax filing period against a backdrop of a lack of awareness about tax returns.

Related articles: Cryptact, the first TV commercial supporting cryptoasset tax returns

The main points of this survey result are as follows.

①Investment scale in cryptoassets

• “The most common range is between 1 million and less than 5 million yen,” accounting for 41%.
• 10% for the high-volume tier of “10 million yen or more”

②Implementation status of the 2024 tax return.

• “Already completed declaration” is 65%
• “Planned to declare but not completed” is 7%
• “No declaration planned (no profit / not subject to taxation, etc.)” is 28%

③Concerns about taxes on cryptoassets

• 39% of respondents said it was difficult to calculate.
• “The tax rate is high” is 35%
• “I don’t know how to calculate” is 16%

④ Status and Methods of Profit and Loss Calculation

• 74% of the people who “conducted profit and loss calculations”
• Among them, the calculation method “Using the Profit and Loss Calculation Tool” was the most common at 85%.

In the question regarding investment scale, those who answered “less than 5 million yen” accounted for 41%, and those who answered “over 10 million yen” also made up 10% of the total. The company analyzes that cryptoassets are being utilized not just for some “trial investments” but as a major means of asset formation. Moreover, it was explained that the main challenges at the time of declaration are the complexity of the tax system and the intricacies of profit and loss calculations.

On the other hand, only 14% of the users of the profit and loss calculation tool answered that it was difficult to calculate, and compared to manual calculations using Excel, the difference in burden depending on the method was clearly visible.

The company commented, “In response to this survey, we will work on improving our functions and strengthening our support system to reduce the burden on cryptoasset investors when filing their taxes, making it easier and more accurate for them to complete their tax returns.”

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