The ruling Liberal Democratic Party (LDP) and Komeito’s Tax Commission finalized the 2025 (Reiwa 7) tax reform outline at their general assembly.
（8:30-9:15）自民党税調・税制調査会総会
— 神田潤一（衆議院議員2期目、法務大臣政務官） (@Jun1CanDo) December 20, 2024
令和7年度税制改正大綱が決着しました。
103万円の壁の引き上げ、ガソリンの暫定税率の廃止、 iDeCoの拠出限度額の引き上げなども明記されました（金額の記載はなし）。
また、暗号資産税制に関する今後の検討も記載されました。 pic.twitter.com/XyvwfOraJL
The tax reform outline serves as a blueprint for tax reforms in the upcoming fiscal year, compiled by the ruling parties at the end of each year. The contents included at this stage proceed to deliberation and enactment as concrete legislation during the ordinary session of the National Diet the following year.
In the contentious issue of cryptocurrency tax reform, inclusion in the tax reform outline has been a critical milestone.
Currently, cryptocurrency is taxed as “miscellaneous income,” with a high maximum tax rate of 55%, significantly higher than in other countries. Issues such as taxation on currency exchanges and the inability to carry forward losses across fiscal years have posed challenges. These factors have raised concerns about the outflow of promising talent and startups overseas, stagnation of domestic business, and reduced international competitiveness in the emerging Web3 sector.
Excerpt from the LDP Tax Reform Outline
Regarding taxation on cryptocurrency transactions, the outline states:
“Certain cryptocurrencies will be broadly positioned as financial products that contribute to asset formation for the public under regulatory frameworks. Necessary legal developments will be undertaken to align with investor protection regulations, such as disclosure obligations and suitability requirements equivalent to those for listed stocks and other financial products with tax privileges. At the same time, reporting obligations for transaction details by operators to tax authorities will be established as a prerequisite for reviewing the taxation system.”
自民党税制改正大綱
— 酒井克彦 (@SakaiTax) December 20, 2024
「暗号資産取引に係る課税については、一定の暗号資産を広く国民の資産形成に
資する金融商品として業法の中で位置づけ、上場株式等をはじめとした課税の特
例が設けられている他の金融商品と同等の投資家保護のための説明義務や適合性…
Urgent Proposal by MP Hirai to Financial Services Agency
金融庁へ。加藤勝信金融担当大臣に「暗号資産を国民経済に資する資産とするための緊急提言」を申入れました。ポイントは①暗号資産取引による損益を申告分離課税の対象に、②暗号資産に関する規制の枠組み等について、③国民経済に資する資産となるためのサイバーセキュリティへの取組に、の3点。加藤… pic.twitter.com/gZ69ytUfCj
— 平井卓也（ひらいたくや） (@hiratakuchan) December 20, 2024
In connection with this matter, Takuya Hirai, a member of the LDP’s Digital Headquarters and the inaugural Minister for Digital Affairs, visited the Financial Services Agency (FSA). He submitted an “urgent proposal to make cryptocurrencies assets that contribute to the national economy” to Shunichi Kato, Minister in charge of financial services. The proposal highlighted the following three key points:
- Making gains and losses from cryptocurrency transactions subject to separate taxation at a flat rate.
- Establishing a regulatory framework for cryptocurrencies.
- Promoting cybersecurity measures to ensure cryptocurrencies serve as assets contributing to the national economy.
According to MP Hirai, Minister Kato broadly agreed with the proposals, raising expectations for accelerated movement towards specific policy designs.
Major Step Towards Cryptocurrency Tax Reform
The inclusion of cryptocurrency tax reform considerations in the LDP’s tax reform outline sets the stage for reviewing tax rates, improving loss carry-forward rules, and changing tax classifications. This development allows the FSA and the National Tax Agency to begin specific policy designs, enabling cryptocurrency exchanges and other related businesses to prepare accordingly.
Had the review of cryptocurrency taxation not been mentioned in the outline, the 2025 tax reform would likely face significant difficulties, with the realization of reforms substantially delayed.
Although the current stage remains a “review phase,” leaving uncertainties, the inclusion of cryptocurrency-related tax reform considerations represents a significant step forward, given the repeated exclusion from tax reform outlines in recent years.
Future improvements, such as introducing a flat 20% tax rate for separate taxation and a loss carry-forward system, are expected to bring significant benefits to investors. With its inclusion in the outline, cryptocurrency tax reform measures are more likely to become part of the policy package in the 2025 reform.
Adjustment to the “1.03 Million Yen Income Barrier”
The outline also addressed the much-debated issue of the “1.03 million yen income barrier,” proposing to raise the deduction threshold to 1.23 million yen.
Yukio Tamaki, leader of the Democratic Party for the People, argued that “1.23 million yen is insufficient, and a further increase is essential.” The LDP tax reform outline included language from the recent agreement among the secretaries-general of three parties: “We aim for a threshold of 1.78 million yen starting next year and will conduct earnest discussions to achieve this.”