Japan is on top of crypto profits without paying corporate taxes.

Japan Abolishes Corporate Tax on Unrealized Profits Companies holding unrealized profits on their crypto assets will no longer pay taxes on them starting April 1, 2024.

Japan is evading corporate tax on unrealized profits from cryptocurrency holdings, according to local media reports.

Japan changes corporate tax law on crypto

Companies and institutions holding crypto will not pay tax on their “unrealized gains” from April 2024, according to news updates.

The cabinet approved the tax changes on December 22, local media Nikkei reported. The new tax regime will take effect on April 1, 2024 — the day Japan's fiscal year begins.

This follows the Japanese government's approval of an amendment to the country's tax law that applies to companies that own digital assets provided by third parties. Companies are set to pay tax only on actual profits – after they sell.

As set forth and subject to the law, corporate crypto holders are taxed on the “mark-to-market value” of their assets each fiscal year. However, with the revision, companies holding unrealized cryptocurrency profits will not be subject to this tax.

In June, Japan's tax agency clarified that crypto issuers are not subject to the 35% capital gains tax.