Japan government backs 20% tax on crypto profits, on par with stocks
The Japanese government supports a plan to introduce a flat 20% tax on crypto profits, aligning it with stock taxation.Summary
The Japanese government, along with the ruling coalition, is reportedly backing plans proposed by the Financial Services Agency (FSA) to significantly reduce the maximum tax rate on cryptocurrency profits to a flat 20%. This change aims to align crypto taxation with that of other financial products like equities and investment funds, which are already taxed at a flat 20% rate. Currently, crypto trading profits are taxed as miscellaneous income, ranging from 5% up to 45% plus inhabitant tax. The FSA intends to submit a bill to amend the Financial Instruments and Exchange Act during the regular Diet session in 2026, which will also include stricter oversight measures. This potential reform has been long sought by the Japan Blockchain Association (JBA) as a way to boost the domestic crypto market by removing a major disincentive for investors.
(Source：Cointelegraph)