Japan Announces Cryptocurrency Tax Reform Plan, Proposing Introduction of Separate Taxation System
BlockBeats News, December 26th. On December 19th, the Liberal Democratic Party of Japan and the Japan Innovation Party announced the outline of the Reiwa 8 fiscal year tax system revision, proposing to position cryptocurrency as a financial product that contributes to national asset formation and planning to introduce a separate taxation system.
According to the plan, spot trading, derivative trading, and ETFs of cryptocurrency will be included in the scope of separate taxation, and trading losses will be allowed to be carried forward for three years for deduction, aligning the tax system with other financial products such as stocks. It is worth noting that this reform plan does not cover all cryptocurrency transactions, and income-generating transactions such as Staking and Lending may still be subject to the current tax system.
At the same time, NFTs have not been clearly included in the reform scope and may continue to be subject to comprehensive taxation as miscellaneous income. Exchanges will submit user transaction reports to the tax authorities, and investors will face higher tax compliance requirements in the future. Experts recommend that investors should organize their transaction records in advance to be able to respond smoothly to the new tax system implementation.
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