Japan’s New Economic Stimulus Includes Major Overhaul of Crypto Tax Rules
Japan is moving forward with a major economic stimulus package that includes significant changes to its crypto taxation system, according to local media reports on Nov. 20.
Prime Minister Shigeru Ishiba has pledged bipartisan support for reforms designed to ease the financial burden on crypto investors and position Japan as a global leader in digital asset innovation.
The proposed changes aim to replace Japan’s current “miscellaneous income” tax on crypto, which can reach up to 55%, with a flat 20% rate. This move aligns crypto tax treatment with traditional investment income, making compliance simpler and fostering a more investment-friendly environment. These revisions are part of a broader package that also includes raising the income tax exemption threshold and cutting taxes on fuel and sales to stimulate consumer spending.
The reforms are expected to take effect by 2025, pending parliamentary approval. The move comes as Japan seeks to remain competitive in the blockchain and Web3 sectors, addressing concerns that high taxes have driven talent and investment elsewhere.
Clever Robot News Desk 22nd November 2024
