Are gains on the sale of crypto assets miscellaneous income rather than capital gains?

2025/09/30 10:00
Junya Izumi
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Are gains on the sale of crypto assets miscellaneous income rather than capital gains?

Crypto assets and income classification

The National Tax Agency has stated that, in principle, profits earned by individuals from the transfer of cryptocurrencies are considered "miscellaneous income." Why is this considered "miscellaneous income" rather than "capital gain," which carries a lighter tax burden?

Income tax is categorized into 10 types based on the nature and source of income: interest income, dividend income, real estate income, business income, salary income, retirement income, timber income, capital gain, temporary income, and miscellaneous income, and establishes appropriate methods for calculating income amounts for each type. Income tax is broadly applicable to income in the form of economic gain, but not all income is taxed in the same way.

Even when earning income related to cryptocurrencies, the applicable income classification varies depending on the case.

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Iolite Vol.17

Iolite Vol.17

January 2026 issueReleased on 2025/11/29

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MAGAZINE

Iolite Vol.17

January 2026 issueReleased on 2025/11/29
Interview with Andrea Baglioni, Head of Capital, Solana Foundation, Iolite FACE Vol. 17 PHOTO & INTERVIEW: Hiroaki Miyata Features: "How to Attend International Conferences" and "Predicting 2026: A Map of the Future of Crypto Assets at a Crossroads" Crypto Journey: "From FASTNAIL to a DAT Company: Convano's Financial Strategy for Holding 21,000 BTC" Interview with Taiyo Azuma, Director of Convano Inc. Series: "An Expert's Perspective on the Fluctuating Crypto Asset Market" by Kasou Nishi Series: Tech and Future by Toshinao Sasaki, etc.