Japan’s ruling party is pushing for urgent cryptocurrency tax reforms
According to Coinpost, the Liberal Democratic Party’s web3 team released a White Paper, on April 12, claiming that “Japan will be the center of web3,” following the government’s decision to allow venture capital investment in domestic crypto companies in February.
New Era for crypto in Japan: Ruling party seeks policy changes
The team suggests a new approach to taxing cryptocurrency transactions. They recommend that profits and losses from these transactions should be subject to separate taxation through self-assessment. This change is urgently needed, according to the team. They have passed on their report to the party’s Digital Society Promotion unit for further consideration.
Currently, Japanese law requires crypto traders to report their trading profits and losses on their annual income tax returns.
Beginner’s guide to crypto taxation in Japan
Japanese taxpayers must declare their crypto profits as ‘other income’, which can lead to a wide range of tax rates ranging from 11% for low earners to over 50% for high earners.
Cryptocurrency trading profits are taxed in most countries, similar to taxes on investments like stocks and shares.
Prime Minister Fumio Kishida’s support has already led to a big change: companies won’t be taxed on unsold cryptocurrency assets that increase in value. This is a win for Japan’s web3 community and could lead to more innovation and progress.
Japan’s crypto tax reform: a new era for traders
Japan’s crypto tax reform is moving forward. The Digital Society Promotion unit will review the proposal, and if approved, it will go to the Political Affairs Research Council. If the council approves, the reform will become official policy for the ruling Liberal Democratic Party.
The ruling party has a strong majority in both the House of Representatives and the House of Councillors. This means the reform is likely to pass, making it a matter of “when” not “if” for Japanese crypto traders.
The web3 community in Japan is hopeful for a favourable outcome, as the reform would create a more welcoming environment for crypto innovation and growth.
Web3 Revolution takes shape in Japan with new crypto plans
Japan is gearing up to take the reins of the web3 revolution, with a new white paper outlining plans to transform the country into a global powerhouse for blockchain technology and web3 innovation. To achieve this, the paper proposes some key changes. For example, crypto profits would be taxed separately from income tax, and traders could defer losses for up to three years.
Overall, the white paper marks a significant step forward for Japan’s web3 ambitions. If implemented, the proposed changes could make Japan a more attractive place for crypto innovation and investment.
