Japan's FSA Proposes 20% Crypto Tax Rate and Loss Carryovers for 2025

Sep 4, 2024, 08:30 AM

Japan's Financial Services Agency (FSA) has introduced tax reform plans for fiscal year 2025, marking the first inclusion of crypto assets in the country's tax regulations. The proposed reforms aim to align crypto tax rates with those of traditional financial assets. The current maximum tax rate of 55% on cryptocurrency transactions could be reduced to a unified 20% tax rate. Additionally, the reforms would allow for loss carryovers. This move is in response to feedback from investors and industry leaders, who have been advocating for a more favorable tax environment for cryptocurrencies. The Japanese government believes this shift could position Japan as a top 5 crypto jurisdiction.