JAPAN PLANS TO LOWER CRYPTO TAX FROM 55% TO 20%‼️
A major change is on the agenda for the tax rate applied to cryptocurrencies in Japan. If the Japanese Democratic Party wins the election, the tax rate applied to crypto earnings could be reduced from 55% to 20%. Currently, crypto earnings in Japan are taxed under the “other income” category, which varies between 15% and 55% depending on an individual’s total income. The proposed new regulation would see crypto earnings taxed at a flat 20% rate, the same as traditional financial assets (like stocks).
The reform aims to create an investor-friendly environment in Japan’s cryptocurrency market. The country’s crypto community has long been calling for regulation on the issue. In 2023, the Japan Blockchain Association (JBA) proposed a similar change, but the initiative did not result in a policy change at the time. The proposed tax adjustment would create a more attractive environment for investors and contribute to Japan’s growing crypto market.
As a result, this tax reform could fundamentally change Japan’s approach to crypto assets and increase the country’s competitiveness in the field.
#btc #escointoken $BTC $ETH References: 1. Crypto2Community, “Japan Mulls Reducing Crypto Tax Rate from 55% to 20% by 2025”, Accessed: 20 October 2024. 2. 99Bitcoins, “Japan Considers Flat 20% Tax Rate on Crypto Profits”, Access: 20 October 2024.
