Japan's Financial Services Agency (FSA) has released plans to overhaul the nation's tax code, which could lower the tax rate on crypto assets in 2025. The FSA highlighted crypto assets in its Aug. 30 request for tax reform, pushing for them to be treated like traditional financial assets that the public can invest in.

Currently, crypto profits in Japan are taxed as miscellaneous income between 15% and 55%, with the highest rate of 55% applying to earnings over 200,000 Japanese yen ($1,377). In comparison, profits earned from stock trading only incur a tax rate of 20% at the highest levels. Corporate crypto holders must pay a flat 30% tax rate on their holdings at the end of the financial year, even if they haven't made a profit through a sale.

The proposed changes aim to lower the tax burden on crypto investors and encourage greater participation in the crypto market. This move by Japan's financial regulator could pave the way for increased adoption and investment in the cryptocurrency ecosystem within the country.

Source: https://cointelegraph.com/news/japan-lower-crypto-taxes-2025-financial-services-agency-tax-overhaul

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