By: Eva Baxter
In a significant move for digital assets, Japan's government has abolished the tax on unrealized crypto gains for corporations. This major policy change, expected to take effect in April 2024, marks the start of Japan's fiscal year and eases the tax burden for corporations holding and managing crypto assets.
Previously, corporations would be taxed based on the difference between the market and book value for assets held at the end of each fiscal year. With the introduction of this amendment, corporations will only be taxed upon selling their crypto assets.
This change strongly positions Japan to attract more institutional investors to its crypto market, fostering web3 technology adoption, supporting local startups, and drawing in international crypto businesses. Japan is currently one of the few countries with strict crypto regulations.
The proposed revision, however, still needs legislative approval at a regular Diet session scheduled for January 2024. The proposed change sprouted from the request made by the Japan Crypto Asset Business Association (JCBA), and it aims at harmonizing taxation requirements while facilitating crypto-related businesses.
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