Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has proposed a new tax plan that would reduce taxes on crypto gains to 20% if elected. This proposal announced via an X post on October 20, aims to align crypto taxes with those on stock market profits.
Under Tamaki’s plan, crypto-to-crypto exchanges would not trigger a taxable event, and gains would be taxed separately at a flat 20% rate instead of the current miscellaneous income classification, which can result in taxes as high as 55%.
Despite the ambitious plan, its implementation remains uncertain, as the DPP currently holds only 7 out of 465 seats in Japan’s House of Representatives. However, Tamaki urges voters to support the DPP if they believe in lowering crypto taxes, stating: “We want to make Japan a strong nation in the Web3 business.”
Japan’s crypto profits are currently taxed between 15% and 55% depending on personal income, while stock trading profits are taxed at a maximum rate of 20%. Additionally, corporate crypto holders must pay a flat 30% tax on their holdings, regardless of whether they’ve realized any profits.
Though Tamaki’s party faces an uphill battle in the upcoming October 27 election, local surveys predict that DPP representation could increase from 7 to as many as 20 seats, as the ruling Liberal Democratic Party (LDP) and Komeito coalition are expected to retain their majority.
