Say for example in 2024 you sell some crypto for significant gains. You would pay the 20.315% tax on it as it’s miscellaneous income. But then in 2025 if your national health insurance and residence tax is based off your 2024 earnings, you’re not just paying the 20.315% tax on your gains, but you also have to factor in your increase in health insurance payments and residence tax. Right?
So if you made like 10mil¥ is capital gains one year, you would pay roughly 2mil¥ in tax, but you then have to factor in that your NHI and residence tax will also go up significantly the following year. So in the end you would end up paying a lot more than just 20.315% tax.
by Indoctrinator