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Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has proposed a significant tax reduction on cryptocurrency gains, aiming to lower the rate to 20% if elected. This move is part of his broader strategy to position Japan as a global leader in the Web3 industry.
In an Oct. 20 post on X (formerly Twitter), Tamaki urged voters to support the DPP if they believe crypto gains should be taxed at 20%, similar to stock market profits, rather than being classified as miscellaneous income, which currently incurs tax rates of 15% to 55%.
Tamaki’s crypto tax plan would also exempt crypto-to-crypto trades from triggering taxable events. While the DPP only holds seven seats in Japan’s 465-member House of Representatives, the party is campaigning on policies aimed at reducing inflation and boosting take-home pay.
Japan’s Financial Services Agency is also considering crypto tax reforms for 2025, but Tamaki’s proposal could accelerate these changes if his party gains more seats in the Oct. 27 election. Crypto investors in Japan currently face much higher tax rates than stock traders, with corporate crypto holders taxed at 30%, even without realizing a profit.
Though the DPP is a smaller party, recent opinion polls suggest it could expand its influence, potentially gaining up to 20 seats.