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Japan's Liberal Democratic Party promotes cryptocurrency tax reform, proposing a separate 20% tax

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2024-12-20 09:03:04
On December 20th, according to Coinpost, the head of the Web3 working group of the Liberal Democratic Party's Digital Society Promotion Headquarters in Japan, Zha Shiozaki Akagisa, reported that the Liberal Democratic Party's government affairs investigation committee officially approved the "Emergency Proposal on Converting Crypto Assets into Assets Beneficial to the National Economy" on the 19th.
The report points out that under the current tax system, income generated from crypto-asset transactions is in principle classified as miscellaneous income and subject to syndromic taxation at a maximum rate of 55% (income tax and resident tax combined), which is more stringent than in other countries.
In light of the above points, and whether cryptoassets should be considered financial assets that should be invested by the public, the following points should be considered:
Change the profits and losses generated by cryptoasset transactions to a "separate taxation" system at a 20% rate
Allows losses in the amount earned from cryptoassets to be carried forward and deducted (can be used within the next 3 years)
Crypto asset derivatives transactions are also subject to the "separate taxation" system
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