Japanese Crypto Firms Petition Government to Reform Crypto Tax
An association of Japanese crypto exchanges and blockchain companies has petitioned the government to make coin-related tax reforms.
In an official Japan Blockchain Association (JBA) release, the companies asked Tokyo to make the changes ahead of the Financial Year 2025.
The JBA explained that high tax rates on crypto profits are “hindering” Japanese citizens’ efforts to save valuable assets.
The body called on Tokyo to use the same tax rate as it applies to conventional financial assets such as stock exchange-listed stocks.
The JBA comprises some of Japan’s top blockchain firms and crypto projects, including the exchange bitFlyer.
Last month, the body said it would press the government to reform the nation’s strict tax laws and “focus on the introduction of” new tax measures in the year ahead.
The body noted that existing tax rules for cryptoasset-related transactions are overly complicated.
It also claimed that Japan’s sliding scale system of taxation is a “reason why many investors avoid investing in cryptoassets.”
In many other countries, tax rules oblige crypto traders to pay flat-rate capital gains tax levies on annual profits.
But Japanese law forces traders to file token-derived profits in the “other income” section on their tax declarations.
And that means the highest-earning individuals can pay a maximum of 55% tax on their crypto-related earnings.
This is far more than is the case in other leading economy nations, the JBA explained.
The JBA and other industry groups have already successfully pushed Tokyo to reform the crypto tax laws governing companies.
This means that Japanese companies will no longer have to pay taxes on their unrealized crypto holdings.
Some lawmakers have shown an interest in reforming tax rates for
Read more on cryptonews.com
