Japan plans to impose a 20% flat tax on cryptocurrency profits

VTV.vn - Japan is considering applying a flat tax rate of 20% on profits from cryptocurrency transactions, according to Nikkei on December 1.

The proposed 20% tax would be split between a 15% income tax paid to the central government and a 5% residence tax paid to local governments. The new rules would separate crypto income from current salary or business income, which is taxed progressively at rates as high as 55%. The current high tax rates are believed to be the reason many investors are delaying taking profits. The rule change will be included in the 2026 tax reform outline.

Along with tax reform, Japan's Financial Services Agency plans to submit a bill to amend the Financial Instruments and Exchange Act in the 2026 Diet session to strengthen oversight of the digital asset market.

Bitcoin cryptocurrency. Photo: AFP/TTXVN

The revised law will ban insider trading, increase transparency requirements for digital asset issuers, and tighten controls on illegal overseas transfers, a situation that became even more urgent after the theft of over 48 billion yen worth of Bitcoin from the DMM Bitcoin exchange in 2024.

Japan is also expected to allow investment trusts to hold cryptocurrencies, similar to the international trend with the strong growth of Bitcoin ETFs such as the product operated by BlackRock.

Experts say synchronized changes in taxation and legal oversight could create a more solid foundation for Japan's blockchain industry and digital asset market in the coming years.

Source: https://vtv.vn/nhat-ban-du-dinh-ap-thue-co-dinh-20-doi-voi-loi-nhuan-tu-tien-dien-tu-100251202071012694.htm