Tax Reporting Guide for Bitcoin Payments via AkaSha

 


TAX with United States · South Korea · Japan

For small businesses that accept Bitcoin payments, it is essential to report income thoroughly and accurately according to each country’s tax laws.

AkaSha is a P2P Bitcoin payment platform that envisions a decentralized, fee-free, borderless economy. While protecting user privacy and never charging transaction fees, AkaSha actively encourages lawful tax compliance. The platform also supports transparent bookkeeping through its Bitcoin POS function.

Merchants on AkaSha will soon be able to download monthly Bitcoin sales data as Excel files to assist with tax filings. Still, even without this feature, every business is responsible for keeping its own detailed records and filing taxes properly.

Let’s review how Bitcoin income is taxed and reported in the United States, South Korea, and Japan.


๐Ÿ‡บ๐Ÿ‡ธ United States: How to Report Bitcoin Income

In the U.S., cryptocurrency is treated as property, not currency. When a business receives Bitcoin for goods or services, the fair market value in U.S. dollars (USD) at the time of receipt must be recorded as business income.

For example, if a cafรฉ receives $50 worth of Bitcoin, that $50 counts as revenue. Later, if the business holds the Bitcoin and sells it at a higher price, the difference is taxed separately as capital gains.

Key steps for U.S. merchants:

  1. Keep detailed records → Record the date, amount, and USD value of every Bitcoin payment. AkaSha POS (and wallets like Breez) can provide downloadable ledgers to simplify this.

  2. Convert to USD → Add up all Bitcoin payments received during the tax year in USD terms. This amount is reported as business income.

  3. File the right forms → Sole proprietors include Bitcoin income on Schedule C (Form 1040). Capital gains/losses are reported separately on Form 8949 and Schedule D.

  4. Tax deadlines → Annual income tax returns are due around April 15. Crypto income is taxed at ordinary progressive rates (up to 37%). Capital gains are taxed based on holding period: short-term (ordinary rates) or long-term (0–20%).

  5. Other notes → Since 2023, tax forms include a question on digital asset activity; if you received Bitcoin payments, you must check “Yes.” Transactions exceeding $10,000 in value may trigger additional reporting requirements (Form 8300).

The IRS clearly states: “Crypto payments for goods and services are business income, taxed the same as other income.” AkaSha’s transaction records help small businesses comply with U.S. law confidently.


๐Ÿ‡ฐ๐Ÿ‡ท South Korea: Reporting Bitcoin Sales and Taxes

In Korea, taxation of crypto gains has been delayed, but a system will begin in 2027. Profits from cryptocurrency will be taxed as “other income” at a flat 20% rate after an annual exemption (currently ₩2.5 million, with proposals to raise this to ₩50 million).

For businesses, however, Bitcoin received as payment must already be reported as sales revenue.

Key steps for Korean merchants:

  1. Record sales in KRW → Each Bitcoin payment must be converted into Korean won at the time of transaction. For example, receiving 0.01 BTC worth ₩4,000,000 means ₩4,000,000 in sales.

  2. VAT reporting → Even though Bitcoin is not legal tender, VAT is still applied based on the KRW value of sales. Report Bitcoin sales in your quarterly or biannual VAT filings.

  3. Comprehensive income tax → In May, include Bitcoin revenue with other business income in your annual return. Future crypto capital gains (after 2027) will be taxed separately under “other income.”

  4. Important notes → Crypto payments are not considered “cash receipts,” so there is no requirement to issue a cash receipt, but merchants must maintain records. From late 2025, foreign crypto transactions will require reporting to regulators.

In short, Korean merchants must carefully record Bitcoin sales in KRW and report them in income tax filings. AkaSha’s POS system helps ensure compliance by providing transparent ledgers.


๐Ÿ‡ฏ๐Ÿ‡ต Japan: Reporting Bitcoin Income

In Japan, crypto income is classified as miscellaneous income (้›‘ๆ‰€ๅพ—) and taxed at progressive rates up to 55% (national tax 5–45% + local tax 10%). Corporations are taxed at the standard corporate rate of 23.2%.

Key steps for Japanese merchants:

  1. Record in JPY → Every Bitcoin payment must be converted into yen at the time of receipt. The National Tax Agency (NTA) requires complete transaction ledgers in JPY.

  2. Annual tax filing → Personal business owners must file tax returns by March 15 each year. Crypto income is reported under “miscellaneous income” in e-Tax.

  3. Calculate income → Payments received in Bitcoin are recorded at fair market value on the date received. If the Bitcoin is later sold or spent, the difference between the sale/use price and acquisition price is taxed as income.

  4. Rates and rules → Crypto income is aggregated with other income for progressive taxation. Losses cannot currently be carried forward or offset against other income. However, reforms are being discussed to allow 20% separate taxation with loss carryforwards from 2026.

  5. Other notes → If annual crypto income is below ¥200,000, reporting may be exempt (unless other income requires filing). However, most businesses must report. Japan strictly enforces crypto tax compliance, with penalties for non-reporting.

AkaSha will provide yen-based monthly ledgers to make compliance easier for Japanese merchants.


AkaSha: Free Business, Responsible Reporting

Bitcoin payments bring borderless freedom and near-zero transaction costs. But tax reporting obligations remain country-specific.

AkaSha enables merchants to enjoy the benefits of peer-to-peer Bitcoin payments while offering transparent transaction records for lawful compliance. True to its motto, “Freedom isn’t a place. It’s how you live,” AkaSha protects user privacy and autonomy while supporting responsible business practices.

Summary:

  • U.S. merchants → Report Bitcoin in USD as business income; later sales taxed as capital gains.

  • Korean merchants → Record in KRW as sales; file VAT and income tax; capital gains taxation starts in 2027.

  • Japanese merchants → Record in JPY; file under miscellaneous income by March 15; taxed at progressive rates.

By combining AkaSha’s POS system with careful bookkeeping, merchants can confidently run their businesses with Bitcoin—enjoying freedom while fulfilling their tax responsibilities.

๐Ÿ‘‰ www.akashapay.com