BlockBeats News, December 26: Japan’s Liberal Democratic Party and Japan Innovation Party released the fiscal year Reiwa 8 tax reform outline on December 19, proposing to position cryptocurrencies as financial products that contribute to national asset formation and planning to introduce a separate taxation system.
According to the proposal, spot trading, derivatives trading, and ETFs of cryptocurrencies will be included in the separate taxation scope, and trading losses will be allowed to be carried forward for deduction over three years, aligning with the tax system for financial products such as stocks. Notably, this reform does not cover all cryptocurrency transactions; income-generating activities like staking and lending may still be subject to the current tax system.
Meanwhile, NFTs are not explicitly included in the reform and may continue to be taxed as miscellaneous income under comprehensive taxation. Exchanges will submit user transaction reports to tax authorities, imposing higher tax compliance requirements on investors in the future. Experts advise investors to organize their transaction records in advance to smoothly adapt when the new tax system takes effect.
