CoinDesk Japan stated that the number of virtual currency accounts (called crypto assets in Japan) has exceeded 10 million, and about 1 in 10 people own crypto assets; this represents the popularity of virtual currencies in Japan. At the same time, the Japanese industry has Relevant tax laws are also being actively reformed.
Reform of the corporate tax system at the current stage
Regarding corporate tax, currently both the self-owned part and the third-party held part are no longer included in the final market value assessment and taxation objects, and the reform has been carried out for two consecutive years. (Japan’s National Tax Agency relaxes cryptocurrency tax, and companies’ “unrealized profits” are conditionally exempt from tax)
Personal income tax issues and their impact
However, for personal income tax purposes, it is still considered miscellaneous income and is taxed up to 55%. The JCBA and JVCEA industry associations believe that this high tax rate has become a major obstacle to the large-scale popularization of crypto assets.
Industry groups’ demands for tax reform
The Japan Crypto Asset Exchange Industry Association (JVCEA) and the Japan Crypto Asset Business Association (JCBA) published the “2025 Tax Reform Demand Letter” on July 30 and submitted it to relevant departments.
Main points of the appeal
Income tax: Re-examine income classification and separate taxation, build a tax system that is consistent with the actual situation of crypto assets, 20% of the declaration of separate taxation and loss carry forward deduction (3 years), adopt the same treatment for crypto asset derivatives transactions
Income Tax: Gifts, the tax system must not hinder the donation of crypto assets
Asset tax: Income from the transfer of inherited cryptographic assets will be included in the special case of acquisition fee addition. The lowest average market price in the past 3 months can be selected for inheritance property assessment.
Exchange of crypto assets: Abolish the tax on the exchange of crypto assets and instead impose tax on the exchange into legal tender.
However, virtual currency has received tax reform for two consecutive years, which has also caused protests from other industry groups, arguing that it benefits certain industries. Therefore, some people think that it cannot continue to receive friendly policies in the third year. The tax system is an important system that supports the country, and reform is not easy. However, in order to achieve large-scale popularization of Web3, the industry still hopes to see "three consecutive years" of tax reform.
This article Japan’s crypto-friendly tax system strives for “three consecutive years of reform”, JCBA and JVCEA jointly seek to reduce personal crypto taxes first appeared on Chain News ABMedia.
