Japan Plans 20% Flat Tax on Crypto Profits as Part of Its 2026 Reform Package
Japan is set to overhaul its cryptocurrency taxation framework with a proposed 20% flat rate on all crypto profits by 2026. The new policy splits the levy between local governments (5%) and national authorities (15%), marking a stark departure from the current progressive system that imposes rates as high as 55%.
The existing structure, which taxes crypto gains between 15% and 55% based on income brackets, has driven domestic traders to offshore platforms. By aligning crypto with stocks and investment trusts, the reform aims to retain capital and stimulate local market participation.
Nikkei Asia reports the flat rate could curb tax evasion while simplifying compliance. The MOVE reflects Japan's broader strategy to balance regulatory oversight with industry growth—a delicate equilibrium as global crypto adoption accelerates.
