Tax Reform on Cryptocurrencies in Japan Should Be Postponed to 2028
According to information released by PANews, sources linked to the Japanese political scene indicate that the anticipated reform in the taxation of cryptocurrencies, which foresees the adoption of a separate declaration tax model, may not take effect before January 2028. Initially, the market believed that the change would occur in 2027, in parallel with the approval of a new regulatory framework for crypto assets within the Financial Instruments and Exchange Act. However, this timeline seems to have been delayed.
According to these sources, the progress of the reform has been slower than expected. One of the interlocutors stated that, at the moment, there are not enough fundamentals to accelerate the process. The priority of the Japanese government would be focused on protecting investors, in addition to the need to assess the impacts of the new financial legislation before implementing changes in the tax regime. Following the usual procedures, the expectation is that the new model will take effect from January 1, 2028.
Currently, the gains obtained from cryptocurrency trading in Japan are classified as "miscellaneous income," being added to salaries and other sources of income in the tax declaration. This format can result in a high tax burden, with rates reaching 55%, already including local residential tax.
For years, representatives from the sector and investors have advocated for a change in this system, proposing a model similar to that applied to the stock market. In this format, profits from crypto assets would be taxed separately, with a fixed rate of 20%, which could significantly reduce the tax burden and stimulate the growth of the cryptocurrency market in the country.
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