Yuichiro Tamaki, the leader of Japan's Democratic Party for the People (DPP), has proposed a tax plan that would lower the tax rate on crypto gains to 20% if he wins the upcoming election on October 27. Currently, crypto profits in Japan are taxed as miscellaneous income at rates ranging from 15% to 55%, depending on personal income, while profits from stock trading are taxed at a maximum of 20%. Tamaki's proposal seeks to treat crypto assets similarly to stock profits, relieving tax burdens on investors. He emphasized that under this plan, no tax event would be triggered when exchanging one crypto asset for another. The DPP currently holds only 7 out of 465 seats in the House of Representatives, indicating that Tamaki's chances of implementing this plan may be slim. Nonetheless, his platform focuses on making Japan a leader in the Web3 space and increasing take-home pay to address inflation. In the absence of significant traction, the DPP hopes to increase its representation in the upcoming election.

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