Japan’s Authorities to Cut Down Tax on Paper Profits for Token Issuers
The Tax Committee of Japan’s ruling Liberal Democratic Party has just approved the easing of the tax burden for token issuers.
According to Bloomberg, the proposal removes the requirement for companies to pay taxes on unrealized profits from issued and held coins. At the moment, the rate is 30%.
The objective of the initiative is to stimulate the growth of the financial and technology sectors, as the regulations currently in force have forced entrepreneurs to create start-ups in other jurisdictions.
The amendment to the tax rules will be considered by the country’s parliament in January 2023. If it is approved, it will come into effect from the next financial year, which begins April 1.
The Japanese Prime Minister Fumio Kishida announced in October government investments to promote Web3 services, including those related to the metaverse and NFTs.
