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, with rates ranging from 15% to 55%, depending on the individual's income tax bracket. In comparison, profits from stock trading are taxed at a flat 20% rate. Corporate crypto holders must pay a 30% tax 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, potentially making Japan a more attractive destination for crypto-related businesses and investors. The overhaul is scheduled to be implemented in the fiscal year 2025, which could mark a significant shift in Japan's approach to cryptocurrency taxation.

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

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