Japan: FAQs on cryptoasset reporting framework (CARF), revised CRS
FAQs outlining the reporting system for automatic exchange of cryptoasset transaction information
Japan’s National Tax Agency (NTA) in September 2025 released a set of frequently asked questions (FAQs) outlining the reporting system for automatic exchange of cryptoasset transaction information concerning nonresidents, aligned with the OECD’s cryptoasset reporting framework (CARF).
The FAQs address the following key areas:
- Scope of reporting obligations: Effective January 1, 2026, reporting cryptoasset exchange service providers (RCAESPs), including cryptoasset exchange service providers (CAESPs), financial instruments business operators, and electronic payment instruments transaction operators will be required to collect, verify, and report information on cryptoasset transactions involving nonresident individuals and entities to the NTA.
- Reporting requirements: RCAESPs must submit CARF reports by April 30 of the following year for each reportable contract.
Once identified as a reportable contract, a return is mandatory even if no transactions occurred during the reporting year.
RCAESPs are required to submit annual reports electronically via Japan’s e-Tax system. In cases when electronic submission is not feasible, reports may be submitted using CD-R or DVD-R formats.
- Residency determination and documentation: To determine a user’s country of residence, RCAESPs must collect a “New Declaration Form” from cryptoasset users. This form should include the user’s name, address, country of residence, and FTIN. Any changes must be reported using an “Amendment Declaration Form” within three months. RCAESPs are responsible for verifying the submitted information.
- Record-keeping and data retention: RCAESPs are required to retain documentation for five years following the end of the year at which the relevant contract terminates. These records must be stored in physical, electronic, or microfilm formats, ensuring they remain accessible for regulatory review.
- Penalties for non-compliance: Failure to submit the required declaration forms or to provide accurate information may result in penalties, including imprisonment for up to six months or a fine of up to ¥500,000.
Additionally, in September 2025, the NTA released a fully revised version of its common reporting standard (CRS) FAQs, incorporating the upcoming implementation of the OECD’s 2022 CRS amendments into Japan’s domestic framework, effective January 2026. This update follows the NTA’s June 2025 circular, which outlined the proposed changes aligned with the OECD’s revisions. Read TaxNewsFlash
Read an October 2025 report prepared by the KPMG member firm in Japan