Japan Steals Corporate Tax on Crypto Profits: Report
Japanese companies will no longer be required to pay tax on “unrealized gains” from cryptocurrency holdings in April next year, it is said.
According to local reports, the new changes are set for April 1, 2024 – the start of Japan's fiscal year – after the Japanese government approved the new tax reform at a December 22 cabinet meeting.
Previously, cryptocurrencies held by corporations received from third parties had to be reported – based on the difference between market value and book value, even if the company sold the cryptocurrency.
But now, corporations are taxed only on the profits they make from the sale of cryptocurrencies, similar to what retail investors must comply with under Japanese tax laws.
Earlier this year, Japan allowed VCs to invest in crypto and now this along with allowing real value accounting for companies with crypto. Mads allowed tax on unearned profits in the first place but could be a new potential drain pic.twitter.com/oJGq1iVMG1
— guleid (@riddle245) December 24, 2023
The government first shared the details of the 2024 tax reform in a document published on 14 December.
However, the country's financial services agency On August 31st, he presented his plan to eliminate the failed cryptocurrency profit.
Related: Japan's SBI looks to Saudi Aramco to continue Middle East expansion
Relaxed tax laws allow many companies to continue their Web3-related efforts in Japan.
BREAKING: Japan Ends Crypto Tax on Undisclosed Profits
Big news.
— Martyparty (@martypartymusic) December 24, 2023
Progress has already been made as Stablecoins Circle — the group behind USD Coin (USDC) — recently partnered with Tokyo-based financial services firm SBI Holdings to boost stablecoin adoption and Web3 services in Japan.
Japanese tax authorities In 2022, they found 548 cases of cryptocurrency-related tax violations out of 615 investigations, up 35% from 2021.
But the median price dropped 19% from $36.5 million ($245,000) in 2021 to $30.7 million ($206,000) in 2022.
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