The agency stated that in the course of preparing the tax reform, it came to the conclusion that it was appropriate to classify cryptocurrencies as one of the forms of traditional financial assets in which anyone can invest.
“In terms of the tax treatment of cryptocurrency transactions, cryptocurrency should be treated as a financial asset that can be used as an investment,” the FSA explained.
According to Japan’s tax agency, profits from individuals’ investments in digital assets are currently taxed at rates of up to 55%, while corporate holders are required to pay a flat 30% tax on their crypto assets, even if they made no profit from the sale.
By comparison, the maximum possible tax rate on profits earned from investments in traditional financial instruments does not exceed 20%.
Earlier, Japan’s Financial Services Agency clarified its position on peer-to-peer trading, stating that it does not intend to ban cryptocurrency transactions between individuals.
Source: Bits
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