Japan to Ease Crypto Taxation
The Japanese government has given its approval for a 2024 tax regime revision aiming to exempt corporations from paying taxes on unrealized crypto gains when holding the assets for an extended period.
Nikkei and CoinPost noted that the cabinet greenlit the revision on Friday, specifically targeting companies with cryptocurrencies issued by third parties.
Presently, these third-party-issued cryptocurrencies held by corporations are treated as profits or losses based on the market value-book value difference at the fiscal year’s end.
The proposed revision seeks to eliminate this mark-to-market valuation for long-term holdings, ensuring companies are taxed solely on profits generated from cryptocurrency sales.
The revision for the fiscal year 2024 awaits submission to a regular Diet session scheduled for January 2024 and subsequent approval by the Lower House and the Upper House.
