Crypto Tax Filing Survey: "Complex Calculations" Identified as Top Difficulty Among Investors

Jaybe Co., Ltd. (Headquarters: Takamatsu, Kagawa; CEO: Takamichi Mizusawa), operator of the crypto news outlet "JinaCoin," conducted an internet survey of 351 Japanese residents aged 20 and over regarding crypto asset tax returns.

Currently, Japan is considering a shift from the current aggregate taxation (up to 55%) to a flat 20% separate tax for crypto transactions starting in 2028. This survey highlights the realities of tax filing among investors, the specific burdens they face, and the extent to which tax pressures drive considerations for moving abroad.

### Key Findings - **Tax Filing Status**: Out of 144 investors who realized profits (including unrealized gains), 47.2% responded that they have "never filed a tax return." - **Major Obstacles**: The top difficulty cited was "Complex profit/loss calculations" (85 people), followed by "Management of transaction history" (65 people). - **Overseas Migration**: 24.0% of all investors have considered moving abroad due to the tax burden. This figure rises to over 40% among those holding at least 100,000 JPY in crypto assets.

### Challenges in Tax Reporting The survey found that even among those with taxable profits, a significant portion does not file. Unlike traditional securities where brokers handle calculations through "Specified Accounts," crypto investors must manually gather data from multiple exchanges. This complexity, particularly with overseas exchanges and DeFi transactions, creates a high barrier to compliance.

### Impact on Domestic Retention The tax burden is significantly impacting investor retention. While only 5.3% of those holding less than 100,000 JPY considered moving abroad, 40.6% of holders with balances above that threshold have explored or expressed interest in overseas relocation. The data suggests that for Japan to remain a hub for Web3, tax reform must address not only the rates but also the simplification of the filing process.