Description

The DeFi & NFT Tax Summary Sheet is a quick-reference printable designed to simplify the complex world of decentralized finance (DeFi) and non-fungible token (NFT) taxation, especially for individuals and small businesses filing in Japan. This one-pager concisely outlines how different types of DeFi and NFT activities are treated by Japan’s National Tax Agency (NTA), including staking, yield farming, liquidity provision, NFT sales, minting income, and royalties. It distinguishes between taxable events and non-taxable asset transfers while clearly mapping the applicable tax classification—miscellaneous income, capital gains, or business income—depending on context. Color-coded sections and icons visually indicate what is required for documentation, when to report, and what forms to use. Built for clarity, the sheet also includes yen conversion guidance, summaries of the average cost method for NFTs, and rules around airdrops and token launches. Unlike lengthy tax guides, this summary is ideal for referencing during actual tax preparation or client consultations. A comparison table breaks down how the NTA treats DeFi versus centralized finance (CeFi) products, and which tax strategy (e.g., early settlement, offsetting with losses) can be applied in each case. There’s a quick glossary for non-accountants, explaining terms like impermanent loss, liquidity tokens, and NFT floor value. Also included are helpful checkmarks to distinguish personal activities from business operations, guiding users on when to file as an individual versus a sole proprietor. This summary sheet is especially valuable for NFT artists, collectors, DeFi protocol participants, DAO contributors, or accountants unfamiliar with crypto’s nuances. It’s formatted for printing or digital use and serves as a reliable visual companion to more comprehensive tax guides. Whether you’re trying to avoid errors in complex staking rewards reporting or determining the correct classification for NFT royalties, this sheet keeps you organized, compliant, and informed.