Japan FSA Seeks Tax Filing Exemption for Trust-Based Stablecoins in 2027 Tax Reform

Japan’s Financial Services Agency has asked the government to exempt trust-based stablecoins from tax document filing requirements triggered each time a beneficiary changes during circulation, CoinPost reported on Aug. 31.

The agency included the measure in its fiscal 2027 tax reform request released the same day, according to the crypto-focused media outlet. The proposal would ease tax reporting burdens tied to “specified trust beneficiary rights,” a form of trust-based stablecoin.

Under Japan’s inheritance tax law, trustees are generally required to submit trust-related documents to tax authorities for each beneficiary whenever the beneficiary changes. That has created difficulties for trust-based stablecoins because the beneficiary can change with every transfer, making it hard for trustees to identify holders by name and track each change.

The FSA requested a blanket exemption from the filing requirement for beneficiary changes involving trust-based stablecoins in light of those characteristics. The measure was included in the “promotion of financial innovation” section of the tax reform request.

In Japan, fiat-backed stablecoins can be classified as “electronic payment instruments” under the Payment Services Act. Trust-based stablecoins fall under the third category of electronic payment instruments. One example is JPYSC, a yen-denominated token issued by SBI Shinsei Trust Bank.

The FSA also requested a separate tax revision for trust-based stablecoins issued overseas. The issue is set to be discussed later this year as the Japanese government and the ruling party draw up their year-end tax reform plan.