In Japan, the Tax on Income From Crypto Investments May Be Reduced
The Japan Crypto Asset Business Association (JCBA) and the Japan Crypto Asset Exchange Association (JVCEA) urged to cut taxes on income for individual crypto investors.
In their fiscal year 2023 tax reform request, crypto advocates described a number of issues that they believe are hindering the adoption of cryptocurrencies in the country.
According to the document, Japan needs to improve the individual tax filing environment and the importance of crypto assets in the Web3 strategy compared to foreign taxation systems for the cryptocurrency industry.
The associations are proposing to introduce a tax on income from cryptocurrencies at a rate of 20% for individual crypto investors with an exemption from unrealized profits for three years, starting in 2023. In addition, organizations propose to apply approximately the same tax structure to the crypto derivatives market.
According to representatives of organizations, such a decision will be a relief for crypto investors in Japan, who are currently forced to pay up to 55% tax on crypto investments.
Crypto lobbying groups believe the high tax rate will make it harder for businesses and individual investors to own digital assets in Japan compared to more crypto-friendly countries.
Earlier, the Japanese Parliament passed a bill that recognizes stablecoins as digital money.