Yuichiro Tamaki, leader of Japan’s Democratic People’s Party (DPP), has proposed a crypto tax plan that would reduce the tax on crypto earnings to 20% if elected. “If you think crypto assets should be taxed separately at 20%, vote for the Democratic People’s Party,” Tamaki wrote in an X post on October 20.

However, the plan is unlikely to happen as the DPP currently only has seven seats in Japan’s House of Representatives. Taxing crypto earnings at 20% would put it on par with stock market earnings. Under Tamaki’s plan, exchanging one crypto asset for another would not create a tax event.

“I would be happy for you to spread these promises of the DPP,” Tamaki added. Elections in Japan will be held on October 27. The main promise of the DPP is to increase net wages to beat inflation.

Japan’s Financial Services Agency has announced a comprehensive revision plan to the country’s tax code for fiscal 2025. Crypto earnings in Japan are currently taxed at rates ranging from 15% to 55% of personal income.

Do you think this tax plan will help Japan become a leader in the Web3 space? We welcome your comments.