Japan Considers Lowering Crypto Tax Rate to Unified 20% from Current 55%
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Japan is considering a change to its crypto tax code, potentially lowering it to align with other financial assets.
The country’s financial regulator, the Financial Services Agency (FSA), has recently proposed a reform that could lower the tax rate on crypto profits to a flat 20%.
The proposal was outlined in an August 30 request for tax reform, part of a broader review of the fiscal code for the year 2025.
The FSA is advocating for the treatment of cryptocurrencies as traditional financial assets, which would make them more accessible for public investment.
“Cryptocurrency should be treated as a financial asset and an investment target for the public,” the FSA stated in its report.
Crypto taxation: The #Japanese government is considering changing the current maximum tax rate of 55% for cryptocurrencies to a unified 20% tax rate in response to investor feedback.
Currently, Japan taxes cryptocurrency earnings under a miscellaneous income category, with rates ranging from 15% to 55%, depending on the individual’s income bracket.
The high tax rate can apply to earnings over $1,377 (200,000 Japanese yen), making it a significant burden for many crypto investors.
In contrast, stock trading profits are capped at a 20% tax rate, which the FSA suggests should be applied to cryptocurrency as well.
Additionally, corporate holders of crypto assets are required to pay a flat 30% tax on their holdings, regardless of whether they sell their assets at a profit.
The proposed changes would offer some relief to both individual and corporate
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