The post Crypto News: Japan Backs Flat 20% Crypto Tax on Profits appeared on BitcoinEthereumNews.com.

Japan backs a flat 20% crypto tax to boost trading, improve competitiveness, and align digital assets with traditional financial product rules. Japan is moving toward a major shift in its crypto taxation rules. The government and ruling coalition now support a plan to apply a flat 20% tax on crypto profits. This is a major change from the current system, which can charge a maximum of 55% on individual traders. Government Supports Major Crypto Tax Overhaul Japan’s Financial Services Agency first floated the reform in mid-November. The agency hopes to have a bill introduced in early 2026. According to Nikkei Asia, government leaders now support the proposal. This backing means that the plan has a lot of wind as lawmakers prepare a 2026 tax reform package. The idea is to bring crypto taxation in line with regulations for equities and investment funds. The current tax structure has penalized domestic trading. Under the current rules, there is a progressive income tax on crypto gains for retail traders. This burden has sent some investors overseas. However, the proposed flat rate aims to support the market growth and encourage broad participation. The structure also splits the 20% take between the national and regional authorities at 15% and 5%. Related Reading: Crypto News: Japan FSA Plans Mandatory Reserve Funds for Crypto Exchanges | Live Bitcoin News Furthermore, under the reform, crypto profits fall under Japan’s separate taxation framework. This system includes certain sources of income in a separate category from salaries or business income. Supporters say that this results in more predictable obligations for investors. They also believe that it lowers barriers for new participants to have exposure to digital assets.                                              …

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Filed under: News - @ December 2, 2025 8:29 am