The Japanese government is set to ease tax requirements for local crypto firms, as it pushes to stimulate growth in the domestic finance and tech sectors.
At present, Japanese firms that issue crypto are required to pay a set 30% corporate tax rate on their holdings, even if they haven’t realized a profit through a sale. As such, a number of domestically founded crypto/blockchain firms and talent have reportedly chosen to set up shop elsewhere over the past few years.
Japan’s ruling party, the Liberal Democratic Party’s (LDP) tax committee held a meeting on Dec. 15 and approved a proposal — initially tabled in August — which removes the requirement for crypto companies to pay taxes on paper gains from tokens that they have issued and held.
The softer crypto tax rules are expected to be submitted to parliament in January, and go into effect for Japan’s next financial year starting on April 1.
Speaking to Bloomberg on Dec. 15, LDP lawmaker and member of its Web3 policy office Akihisa Shiozaki noted that “this is a very big step forward,” adding that “It will become easier for various companies to do business that involves issuing tokens.”
The latest move from the government appears to signal that its hunger to promote and develop the domestic crypto and Web3 sector hasn’t waned despite the FTX disaster,
Read more: cointelegraph.com