[Bitcoin Now] Japan Considers Separate Taxation for Virtual Asset Transactions... 20% Tax Rate Proposed

NHK reported on December 1 that the Japanese government is considering taxing income from virtual asset transactions, such as Bitcoin, separately from other income, similar to stocks and other financial products. Currently, such income is subject to a maximum tax rate of 55%, but under the proposed separate taxation, a rate of 20% would apply.

The Financial Services Agency of Japan is reviewing a plan to treat virtual assets like financial products such as stocks or bonds, as the number of accounts investing in cryptocurrencies has surpassed 13 million.

Reuters Yonhap News

Accordingly, the government and ruling party are considering classifying income from virtual asset transactions under a flat 20% separate tax rate as part of next year's tax reform.

Currently in Japan, income from virtual asset transactions is classified as comprehensive taxation, meaning it is combined with other income such as salary and taxed according to the total amount. Under this system, the tax rate can be as high as 55% depending on the total income.

The Japanese government plans to determine detailed matters, such as the scope of virtual assets to be treated as financial products, during next year's tax reform.