Japan’s DPP party leader to cut crypto gains tax to 20% if elected
The party currently holds only seven seats in the lower house of parliament
21.10.2024 - 11:40
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3 min
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What’s new? The leader of Japan’s Democratic Party for the People (DPP), Yuichiro Tamaki, has announced that if elected, he will reduce the tax on cryptocurrency profits to 20%. The initiative is part of the politician’s broader plan to make Japan a leader in the Web 3.0 sector.
What else is known?
“The DPP proposes tax cuts and regulatory reform for cryptocurrencies. If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. No tax will be levied on exchanging crypto assets for other crypto assets,” Tamaki stated on his X page.
Taxing cryptocurrency gains at 20% will bring them in line with taxes on stock market gains. There will be no tax consequences when assets are converted under Tamaki’s plan.
The DPP will consider lowering taxes on other financial income in the future, but for now, it is focused on making Japan a leader in the Web 3.0 space.
The plan may be far from a reality, as Tamaki’s party currently holds only seven of the 465 seats in the House of Representatives, the lower house of Japan’s National Assembly. The country’s elections will be held on October 27.
On August 30, Japan’s Financial Services Agency (FSA) released plans for a comprehensive overhaul of the country’s tax code for fiscal year 2025, including provisions to reduce taxes on crypto assets.
Kenya’s tax authority will introduce a system to monitor crypto transactions in real time
The system, integrated into crypto exchanges, will record the amount and time of each transaction
Crypto profits in Japan are currently taxed as other income between 15% and 55%, depending on personal income. At the top end, the tax is imposed on individuals with income over 40 million Japanese yen ($268 000). By comparison, the maximum tax rate on stock trading profits is 20%.
Corporate holders of cryptocurrencies must pay a flat rate of 30% on their assets at the end of the fiscal year, even if they did not make a profit on the sale.
According to a poll by local publication Mainichi, Democratic Party candidate Tamaki’s chances of winning are slim. The Liberal Democratic Party and its coalition partner, Komeito’s party, are expected to retain their majority, while DPP representation could increase from seven to 20 seats.
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