PANews reported on November 23 that, according to Coindesk, shares of Digital Asset Treasury (DAT), a Tokyo-listed company, continue to outperform Bitcoin due to Japan's different tax treatment for stocks and cryptocurrencies.
In Japan, cryptocurrency gains are considered miscellaneous income, combined with wages and other income, and taxed at progressive rates, with a maximum rate of 55%. These gains cannot be offset by losses from other sources, nor can they be carried forward to future years. Equity gains are entirely different. Equity gains are taxed separately at a rate of approximately 20%, losses can be carried forward, and the reporting requirements are simpler. This difference creates a clear financial incentive: directly holding Bitcoin can result in a high tax burden, while holding Bitcoin-linked stocks allows gains to remain in the lower-tax equity category.
However, with Japanese tax authorities considering revising tax policies for cryptocurrencies, DAT's appeal could soon diminish. If this happens, DAT, listed in Tokyo, will quickly lose its tax advantage and become less attractive.


