Japan Mulls Exempting Companies From Paying Taxes on Unrealized Cryptocurrency Gains

Share This Post

Japan Mulls Exempting Companies From Paying Unrealized Crypto Gains Taxes

Japan is considering exempting corporations from paying unrealized gains income taxes related to cryptocurrency holdings. The measure, proposed as part of a reform in Japan’s tax code, would allow companies to avoid paying taxes for cryptocurrencies even if their market value changes during each fiscal year.

Japan to Stop Taxing Corporations for Unrealized Cryptocurrency Gains

The Japanese government is about to overhaul its tax code, improving the regime for companies holding crypto long-term. A new consideration in the tax code discussed by policymakers and slated to be part of the 2024 tax reform establishes that cryptocurrency holdings of corporations would not be taxed for unrealized gains.

Currently, Japan taxes the cryptocurrency holdings of corporations by taking market prices at the start and the end of each fiscal year as a reference, something that has been widely criticized as detrimental for companies holding these assets. The approval of this proposal would mean that companies holding these assets in foreign countries — like Singapore, Dubai, and Switzerland — could bring their crypto holdings to Japan. However, this would mean that the Japanese government would also lose part of the tax collected from companies, taking an undetermined hit.

Nikkei Japan clarifies this would only apply to cryptocurrencies being held as part of companies’ property and not used for short-term trading purposes.

The Japan Blockchain Association called for these changes in June, stating that the tax regime was hindering the growth of Web3 in the country and causing market instability due to the need for companies to sell part of their currencies to pay the corresponding taxes.

Japan has been progressing in the cryptocurrency taxation field, having lifted another tax on cryptocurrencies self-issued by companies in June. Before, companies had to pay taxes on unrealized gains for cryptocurrencies they themselves issued. However, this measure was lifted, opening Japan for companies that want to issue, or have issued, such currencies.

What do you think about the possible change in Japan’s cryptocurrency tax regime? Tell us in the comments section below.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin Is ‘Ready To Run Again’ – Analyst Expects 60% Rally

Dogecoin has entered a consolidation phase, holding below its recent local high of $048 Despite showing signs of bullish momentum, the price has struggled to break above key resistance levels,

Trump Confirms Paul Atkins As SEC Leader To Drive Pro-Crypto Policies

President-elect Donald Trump is set to nominate former SEC Commissioner Paul Atkins to lead the Securities and Exchange Commission (SEC), reinforcing his commitment to a crypto-friendly

Crypto Boom Ahead? Trump’s SEC Chair Pick Points to New Era for Digital Assets

Donald Trump has nominated pro-crypto Paul Atkins as SEC chair, signaling a strong shift toward innovation-friendly policies and a transformative era for digital assets Crypto-Friendly Policies in

Trump confirms nomination of Paul Atkins as the new SEC chair

President-elect Donald Trump confirmed Paul Atkins’ nomination as the next US Securities and Exchange Commission (SEC) chairman in a Dec 4 Trust Social post  Trump stated that Atiks

President-elect Trump Officially Nominates Paul Atkins As The Next SEC Chair

The post President-elect Trump Officially Nominates Paul Atkins As The Next SEC Chair appeared first on Coinpedia Fintech News The most anticipated question of who could be the next SEC Chair has

Donald Trump Officially Nominates Paul Atkins As The Next US SEC Chair

The post Donald Trump Officially Nominates Paul Atkins As The Next US SEC Chair appeared first on Coinpedia Fintech News In the latest development, Donald Trump in a post on the Truth Social