The Japan Crypto Asset Business Association (JCBA) has proposed a flat 20% split tax rate on individual crypto assets

According to Coinpost, the Japan Crypto Asset Business Association (JCBA) discussed the country's cryptocurrency tax reform at the international Web3 conference “WebX” 2024.The JCBA made a request for cryptocurrency tax reform in four areas: 1. changing the income tax on personal cryptocurrency assets from the collection of Miscellaneous income (up to 55%) to a separate tax on claims (flat rate of 20%); 2. Developing tax treatment for crypto asset donations; 3. Addressing estate tax issues; and 4. Deferring gains and losses when trading cryptocurrencies.

The experts emphasized the importance of further environmental consolidation that takes into account the special characteristics of crypto assets and called for active public participation in tax reform discussions. The possibility of treating crypto assets as income from transfers was also discussed, as well as how to promote investment and innovation in crypto assets through tax reform.

Note: Declaration of segregated taxation refers to a special taxation method used in the declaration of investment income, i.e. investors are required to calculate and declare their investment income on their own and then pay the tax according to the prescribed rate.