Japan’s Ruling Party Urges ‘Immediate’ Crypto Tax Reform
Japan’s ruling party, the Liberal Democratic Party, wants the government to carry out “immediate” crypto tax reforms.
Per an official Liberal Democratic Party release and a report from the Japanese-language media outlet CoinPost, the party’s web3 project team unveiled a “White Paper” on April 12.
In February, the government unveiled plans to allow venture capital firms to invest in domestic crypto companies.
The team said that “profits and losses” from “cryptoasset transactions” should “be subject to separate taxation by self-assessment.”
And the team said the above issue “should be addressed immediately.” The report has been passed on to the party’s Digital Society Promotion unit.
Currently, Japanese law stipulates that crypto traders must include crypto trading profits and losses on annual income declarations.
Japanese taxpayers need to declare all crypto-related earnings as “other income.” This means that while low-earning individuals can pay as little as 11% on their crypto trading profits, those in higher tax bands could pay over 50%.
In most other countries that tax crypto trading profits, traders need to pay capital gains tax on earnings – as they might do with assets such as stocks and shares.
The Bank of Japan ended its eight years of negative interest rates during its March meeting, matching market forecasts.https://t.co/BjzD4RRMeI pic.twitter.com/j57T8OyqTK
— TRADING ECONOMICS (@tEconomics) March 19, 2024
Campaigners have been urging Tokyo to change its stance for years. However, Prime Minister Fumio Kishida has taken a decidedly pro-web3 stance in recent times.
Kishida has talked up the sector, indicated a willingness to reform tax laws, and spoken in favor of NFT-powered economic growth.
And this has already led to
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