Japan may see a reduced 20% tax on crypto earnings with new proposal

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Some potential relief for Japanese hodlers. Two prominent crypto advocacy groups in Japan have released a tax reform request that calls for lowering taxes for individual investors on crypto earnings. (Reporting via _prashantjha)

The Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association , the two prominent crypto advocacy groups in Japan,a tax reform request that calls for lowering taxes for individual investors on crypto earnings.

The fiscal 2023 tax reform request addressed key issues that the advocacy groups believe act as hindrances to crypto adoption in the country. The proposal focused on the need for improvement in the individual tax filing environment, the importance of crypto assets in Japan’s Web3 strategy and comparison with overseas crypto asset tax systems.

The proposal calls for a separate 20% tax for individual crypto investors with provisions to carry forward losses for three years from the following year. The proposal also calls for the same tax structure to be applied to the crypto derivatives market. The 20% separate tax on crypto earnings with an exemption on unrealized gains would prove to be a big relief for crypto investors in Japan who currently face taxes of up to 55% on their crypto investments.for crypto tax reforms slated to be submitted to Japan’s Financial Services Agency .The Japanese crypto groups have been working to ensure that the crypto industry thrives in the country with a particular focus on tax reforms.

Crypto taxes were the focus of several governments around the globe this year, with many countries implementing high tax slabs while others moved to abolish or delay it due to a lack of clear regulations. India

 

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_prashantjha 👀

_prashantjha How high is their tax lol?

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