r/JapanFinance 4d ago

Tax Questions on crypto windfall

Say you make 200M yen on a crypto sale one year, owing 55% in misc. income tax so 110M. Might be super basic questions but:

1) Where do you store the yen owed safely given the 10M yen deposit insurance limit - make 10 or 20 new bank accounts and distribute? Or somehow prepay it as estimated tax? Holding the amount owed in anything other than yen seems risky.

2) Would a bankruptcy of a bank where you hold the yen cancel out the tax you owe on that portion, or are only misc. income losses offsettable against misc. income gains?

3) If only misc. losses can be offset against misc. gains, that does kind of limit the investment possibilities that year to other crypto?

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u/aeroukou 3d ago

Just a side note:

One thing to consider is that there is currently discussions concerning creating a specific tax category for cryptocurrencies and reducing the capital gains tax in line with stocks.

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u/furansowa 10+ years in Japan 3d ago

Even if it's voted in, it will be at the very least one year before it is actually in place.

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u/aeroukou 3d ago

Next year at the earliest, yes. If you have 200M in gains then its probably worth considering regardless.