Today’s lecture is “Taxation for crowdfunding”
In these days, starting business by using crowdfunding is becoming very popular. However, taxation for these funding is often complicated.
Today, I will talk about the taxation for crowdfunding especially about Reward-based crowdfunding.
There are three types of crowdfunding.
1. Reward-based crowdfunding
2. Equity-based crowdfunding
3. Donation-based crowdfunding
Different tax rules are applied for each type.
Reward-based crowdfunding is the most popular in Japan.
Initiator of the project will provide a reward (goods, services or rights) to contributors in return.
From tax point of view, this activity is same as selling products by cash. Therefore, initiator will pay income tax, corporate income tax for corporation and personal income tax for individual.
Contributor does not have to pay income tax because they simply purchased goods/services