Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has proposed lowering the tax on cryptocurrency gains to 20% if elected. His plan aims to align crypto taxes with stock market profits, which are also taxed at 20%, and is part of his vision to establish Japan as a leader in the Web3 sector.
Tamaki made his case in an Oct. 20 post, stating that if voters support the idea of treating crypto gains separately from miscellaneous income, they should vote for the DPP. Under the current tax system, crypto profits are taxed between 15% and 55%, depending on personal income, with the highest rate applying to those earning more than ¥40 million ($268,000).
Despite Tamaki’s proposal, the DPP holds only 7 out of 465 seats in Japan’s House of Representatives, which makes it uncertain whether the plan can be realized anytime soon. The proposal also suggests that no tax event would be triggered when exchanging one crypto asset for another, providing relief to active traders.
Tamaki’s broader election platform focuses on increasing wages to address inflation, while his long-term goal is to make Japan a key player in the Web3 economy. Japan’s upcoming election will be held on Oct. 27.
Summary Review: Japan’s Democratic Party for the People leader, Yuichiro Tamaki, has promised to reduce crypto taxes to 20% if elected, aiming to make Japan a Web3 leader. His plan, however, faces challenges due to the party’s small representation in parliament. Currently, crypto profits are taxed as miscellaneous income, with rates as high as 55% for top earners. Tamaki’s proposal would align crypto taxes with stock market gains and ease tax burdens on traders exchanging cryptocurrencies.
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