Japan’s top financial official is cautious about the idea of his nation changing how it taxes gains from cryptocurrencies.
During a meeting with the budget committee of the Upper House on June 25, Senator Kenji Fukimaki asked whether Japan’s tax policy on cryptocurrency profits could be changed from its current “miscellaneous income” classification to “separate declared taxation,” Reuters reported. Taro Aso, the deputy prime minister and minister of finance, said he was cautious about making such a change.
Aso explained that, in his view, it was “doubtful” that the general public would understand such a change. He cited the “international nature” of cryptocurrency as one reason why Japanese residents might dislike a change in tax classification. The finance minister also said he was unsure about the “tax fairness” of implementing such a change.
At present, profits earned by investors in cryptocurrency can be taxed between 15 and 55 percent, due to the miscellaneous income rules, according to Bloomberg. Stock profits, which are treated more like separate declared taxes, are taxed at roughly 20 percent in the country.
While the finance official has doubts about cryptocurrency taxation, he still expressed support for blockchain technology in general, saying they have uses apart from cryptocurrencies.
Editor’s note: Statements in this article have been translated from Japanese.
Taro Aso image via Shutterstock