Deep Tide TechFlow News, December 26 – According to CoinPost, Japan’s Liberal Democratic Party and Japan Innovation Party announced the tax reform outline for the Reiwa 8 fiscal year on December 19, proposing to position cryptocurrencies as financial products that contribute to national asset formation and planning to introduce a separate taxation system. Under this proposal, spot trading, derivatives trading, and ETFs of cryptocurrencies will be included in the scope of separate taxation, and trading losses will be allowed to be carried forward for deduction over three years, aligning with the tax systems for financial products such as stocks.
It is worth noting that this reform plan does not cover all cryptocurrency transactions; income-generating transactions such as staking and lending may still be subject to the current tax system. Meanwhile, NFTs are not explicitly included in the reform scope and may continue to be taxed comprehensively as miscellaneous income.
Exchanges will submit user transaction reports to tax authorities, which will impose higher tax compliance requirements on investors in the future. Experts advise investors to organize their transaction records in advance to ensure a smooth transition when the new tax system takes effect.
