• The Japan Blockchain Association (JBA) has proposed three tax reforms to the Prime Minister of Japan to empower the country’s crypto ecosystem.
• These reforms include doing away with year-end unrealized gains taxation, setting a consistent % tax rate of 20% for individual crypto asset transactions and eliminating income tax on earnings from crypto asset exchanges.
• These measures are expected to create a favorable environment for businesses venturing into web3 and simplify crypto asset ownership and usage for the general public.
Japan Proposes Tax Reforms To Empower Crypto Ecosystem
The Japan Blockchain Association (JBA) has requested Prime Minister Fumio Kishida to revise the nation’s tax system concerning crypto assets in an effort to promote the expansion of the industry. The JBA has put forward three main changes that would make it more accessible to individuals and businesses alike.
Unrealized Gains Taxation
Atop their list, they recommend doing away with year-end unrealized gains taxation on tokens issued by third parties. This would allow businesses more freedom when issuing digital assets without them being subject to additional taxes.
Tax Rate For Individual Crypto Transactions
The association also wants the JBA to bring in separate taxation for individual crypto asset transactions and set a consistent % tax rate of 20%. This will provide clarity on how profits or losses from such transactions will be taxed.
Income Tax On Earnings From Exchanges
Additionally, JBA proposes eliminating income tax on earnings from crypto asset exchanges in order to further stimulate growth in this sector. This will make it easier for people who want to trade cryptocurrencies as they won’t have to worry about paying additional taxes on their profits or losses from these activities.
Conclusion
The Japanese government is increasingly open towards blockchain technology and cryptocurrency innovation, making it an attractive destination for firms looking to expand their presence within this space. If accepted, JBA’s proposal for tax reforms could further reinforce this trend and make owning and using cryptocurrency much simpler for individuals living in Japan.