Japan Is Easing Tax on Corporate Crypto Holdings
The tax committee of Japan's ruling Liberal Democratic Party has approved easing the tax burden on token issuers.
The initiative cancels the requirement for companies to pay taxes on unrealized profits from coins issued and held on their balance sheets. Currently, the rate is 30%.
The initiative aims to stimulate growth in the financial and technology sectors. Current rules have forced entrepreneurs to create startups in other jurisdictions.
The amendment to the tax rules is expected to be considered by Parliament in January 2023. If approved, it will take effect from the next fiscal year, which begins April 1.
In October, Japanese Prime Minister Fumio Kishida announced a government investment to promote Web3 services related to meta universes and NFTs, among other things.
That same month, the JVCEA announced plans to relax rules regarding the listing of digital assets for authorized trading platforms.
To recap, the proposal to exempt crypto startups that issue their own tokens from taxes on unrealized gains came in August 2022. Also, its authors proposed lowering the capital gains tax rate for retail investors from 55% to 20%.