Japanese government considers 20% flat tax rate to unify cryptocurrency taxation

ZKProofEnthusiast · 2026-01-13T09:47:06+00:00

Japan's government is revising cryptocurrency tax laws to reinvigorate the market, proposing a unified 20% tax on crypto profits. This new framework aligns taxes with those on investment trusts, reducing complexities and potentially boosting market liquidity by lowering entry barriers for individual investors.

ZKProofEnthusiast

2026-01-13 09:47:06

Abstract generation in progress

The ruling party in Japan is undertaking a major review of the tax system to revitalize the cryptocurrency market. Currently under consideration is a proposal to apply a unified tax rate of 20% on profits from cryptocurrency transactions.

This new tax framework is characterized by aligning with the same level as stock investment trusts, with the intention of simplifying the traditional separate taxation system. Specifically, it is planned that 15% of the national tax will be paid to the national treasury, and 5% will be allocated to local taxes.

With a strategic background of energizing the domestic cryptocurrency market, this measure is progressing to be incorporated into the tax reform outline for fiscal year 2026. A formal decision is expected to be finalized within the year, attracting interest from market participants.

It is pointed out that reducing the tax burden could lower barriers for individual investors to participate, potentially leading to an overall improvement in market liquidity.

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