Japan’s Crypto Tax Overhaul: What is Important to Know

Japan is edging toward its biggest crypto tax shake-up yet. In 2025, ruling-party lawmakers and regulators outlined proposals to make digital-asset investing simpler and fairer—potentially swapping today’s progressive tax treatment for a stock-like, separate 20% rate, adding loss carry-forward, and reclassifying crypto as “financial products.” None of this is law yet, but the roadmap and timing are clearer than they’ve ever been.

Where things stand today

Under current practice, most individual crypto profits in Japan are taxed as “miscellaneous income” at progressive rates that can reach an effective ~55% for top earners (national + local). That treatment differs from stocks, which generally face separate self-assessment at ~20% (income + inhabitant tax). The National Tax Agency (NTA) maintains detailed FAQs defining how crypto transactions are calculated and reported.

The NTA also updated its crypto FAQ in December 2024, adding clarifications (e.g., acquisition cost rules and treatment of certain credit transactions). It’s a useful snapshot of how authorities currently view taxable events and calculation mechanics.

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