Reported by Cointelegraph; A tax cut to 20% is part of Democratic Party for the People leader Yuichiro Tamaki’s broader plan to make Japan a Web3 leader.
Japan’s Democratic Party for the People (DPP) leader Yuichiro Tamaki proposed a crypto tax plan that would lower tax crypto gains to 20% if he gets elected.
“If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People,” Tamaki said in a translated X post on Oct. 20.
Still, the plan could be far from fruition, as Tamaki’s DPP currently holds only seven of 465 seats in Japan’s House of Representatives, also known as the lower house of the National Diet of Japan.
Taxing crypto gains at 20% would align them with the taxes paid on profits from the stock market.
No tax event would be triggered when exchanging one crypto asset for another under Tamaki’s plan.
“I would appreciate it if you could spread the word about these promises made by the Democratic Party for the People,” Tamaki said.
In response to X user Shonai Dog, Tamaki said the DPP would consider imposing tax cuts on other financial income in the future — but for now, it is focused on making Japan a leader in the Web3 space:
“We want to make Japan a strong nation in the Web3 business.”
Japan’s election will take place on Oct. 27. The DPP’s main pitch to voters revolves around increasing take-home pay to beat inflation.
On Aug. 30, Japan’s Financial Services Agency released plans for a comprehensive overhaul of the country’s tax code for fiscal year 2025, including provisions to lower taxes on crypto assets.
Crypto profits in Japan are currently taxed as miscellaneous income between 15% and 55%, depending on personal income.
Crypto taxes can be as high as 55% for individuals earning more than 40 million Japanese yen ($268,000), according to crypto tax firm KoinX.
In comparison, profits earned from stock trading incur a maximum tax rate of 20%.
Corporate crypto holders must pay a flat 30% tax rate on their holdings at the end of the financial year — even if they haven’t made a profit through a sale.
A recent opinion survey from local news outlet Mainichi suggests that Tamaki’s DPP has little chance of winning Japan’s election.
The Liberal Democratic Party and its coalition partner Komeito are expected to retain a majority, while the DPP may see its representation increase from seven to as many as 20 seats.
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