Japan may be set to overhaul its cryptocurrency taxation system as opposition leaders join a chorus of MPs and business leaders calling for tax law changes to stem the churn of cryptocurrency-related talent and persuade Japanese cryptocurrency firms not to move abroad.
In a tweet, the leader of the People’s Democratic Party, MP Yuichiro Tamaki, wrote that the government needs to promote Web3 and the token economy, and indicated that his party wants to impose a fixed rate of 20% on cryptocurrencies instead of the usual one. using the current system.
Currently, cryptocurrency-related income must be declared as miscellaneous income, which means that income can be taxed at up to 40%, depending on the total income of individuals.
Tamaki wrote that it is necessary to act now to prevent the outflow of human resources and business abroad. A number of lawmakers, including Shun Otokita of the Japan Innovation Party, have been calling on Tokyo for several years to change its cryptocurrency tax laws, while private sector groups have tried to do the same.
Forces within the ruling Liberal Democratic Party have also indicated that they would like to remove tax-related obstacles in a Web 3 white paper released last month.
But Tamaki also indicated that he wants to make changes that will allow firms issuing crypto assets to enjoy greater tax freedom.
He added that his party’s policy is to ensure that tokens owned by the company that issues them are excluded from the market value estimate, and that the tax will only be levied when profits are actually made from the token sale.
Tamaki also shared a message from a Japanese Twitter user who opined that Japan should completely abandon the cryptocurrency tax, otherwise it risks completely falling behind foreign countries and suppressing the innovative power of entrepreneurs.
The poster wrote:
I think we know that cryptocurrencies themselves are beyond suspicion.
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