The Japan Cryptocurrency Business Association (JCBA) and the Japan Virtual Currency Exchange Association (JVCEA) have jointly submitted a request for cryptocurrency tax reform to the government for the year 2025.
Under the current tax system, income from cryptocurrency transactions is generally classified as miscellaneous income and therefore subject to comprehensive taxation. The income tax levied on miscellaneous income fluctuates between 5% and 45%, and if resident tax is added, the tax rate can reach as high as 55%.
The request suggests that, given the current state of transactions and the reality of cryptocurrency, income categories other than miscellaneous income or business income can be considered. Introduce a separate tax declaration system of 20% and a three-year loss carryover system. Classify cryptocurrency trading profits as separate income rather than other income.
In addition, on the 19th of this month, the Japan Blockchain Association (JBA) also submitted a request for virtual currency tax reform for the year 2025 to the government. Like JCBA and JVCEA, their primary request is for a separate 20% income tax on income tax.
