Japan’s parliament will consider reducing the tax on crypto income to 20%
The rate currently ranges from 15% to 55%
21.11.2024 - 14:00
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3 min
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What’s new? Japan’s Prime Minister and Liberal Democratic Party (LDP) Chairman Shigeru Ishiba has announced bipartisan cooperation for sweeping reforms in the crypto sector. They will be aimed at easing the financial burden for crypto investors and strengthening the country’s position as a leader in digital assets.
What else is known? The package of amendments in the economic sphere includes a revision of the current rules of taxation of crypto income. Now cryptocurrencies are categorized as other income, the rate of which can reach 55%. It is proposed to replace it with a fixed levy of 20%.
Thanks to the amendments, cryptocurrencies will be equated to income from traditional investments for tax purposes. This move will simplify tax compliance and create a more favorable investment environment.
The initiative is part of a broader tax reform that also involves raising the income tax exemption threshold and reducing fuel and sales taxes to boost consumer spending.
The reforms are expected to take effect by 2025, following parliamentary approval.
South Korean Parliament will consider the implementation of a tax on crypto income from 2025
The levy on incomes over 2,5 million Korean won was 20%
Japan was one of the first countries in the world to introduce a comprehensive regulatory framework for digital assets and continues to take a progressive approach to the industry. However, industry players have repeatedly criticized high rates of cryptocurrencies as stifling innovation and capital inflows.
In July this year, the Japan Blockchain Association formally requested the government to implement tax reform for fiscal year 2025 to stimulate the growth of the crypto sector.
The changes announced by the Prime Minister indicate that the authorities have reached a consensus on the issue. For example, earlier the leader of the opposition Democratic Party for the People (DPP) Yuichiro Tamaki, if elected, also promised to reduce the tax on cryptocurrency profits to 20%.
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