- The Japanese government has officially approved revisions to the tax regime for 2024, according to local media reports.
- One of the key changes is the elimination of corporate tax on unrealized profits from cryptocurrencies.
- This amendment was first proposed by the Japan Crypto Asset Business Association and later supported by the Financial Services Agency.
- The approval by the Japanese Parliament, consisting of the House of Representatives and the House of Councilors, is now required for these changes to take effect.
- If approved, the new rules will only require companies to pay tax when they sell cryptocurrency assets, rather than based on the book value and market value difference at the end of the fiscal year.
- Japanese authorities believe this new tax regime will alleviate the tax burden on digital asset firms and attract institutional investors and major players to the country’s crypto market.
- It is worth noting that Japan has also introduced tax incentives for token issuing companies.
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Japan wants to eliminate corporate tax on unrealized profits from cryptocurrencies
