Japan to Implement Flat 20% Crypto Tax Rate by 2027

Japan is set to overhaul its cryptocurrency tax system, with plans for a flat 20% rate on profits. The country’s Financial Services Agency (FSA) is pushing forward this change, aiming to simplify regulations and encourage investment in the crypto market. Currently, the system relies on a complicated income-based structure that can lead to high taxes, potentially deterring activity within the country. This new approach aims to create a fairer framework for crypto investors and aligns with other major economies embracing simpler tax structures. The FSA’s proposal is expected to pass into law in 2026, with implementation set for 2027.