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Japan's DPP leader proposes 20% crypto tax cut if elected

Japan's DPP leader proposes 20% crypto tax cut if elected

Grafa2024/10/21 07:05
By: Mahathir Bayena
XOLDTOKEN0.00%

Yuichiro Tamaki, the leader of Japan’s Democratic Party for the People (DPP), has pledged to reduce taxes on cryptocurrency gains to 20% if his party wins the upcoming election. 

This tax reduction would bring crypto profits in line with stock market taxes, which are currently taxed at the same rate. 

In a recent post on X (formerly Twitter), Tamaki stated, “If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People.” 

Under his proposed plan, exchanging one crypto asset for another would not trigger a taxable event. 

Despite the promise, the DPP faces an uphill battle, as it currently holds only 7 out of 465 seats in Japan’s House of Representatives. 

According to a recent poll by the local outlet Mainichi, the party is expected to increase its seat count but still holds a slim chance of securing a majority. 

Tamaki also emphasized his vision of turning Japan into a leader in the Web3 industry, stating, "We want to make Japan a strong nation in the Web3 business." 

The upcoming election on October 27 will be crucial for his party's plan, which also includes addressing inflation and increasing take-home pay for citizens. 

Currently, crypto profits in Japan are taxed as miscellaneous income, with rates ranging between 15% and 55%, depending on personal income. 

Corporate holders of crypto are subject to a flat 30% tax, regardless of whether they have sold the assets. 

In comparison, stock market earnings face a maximum tax rate of 20%. 

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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