Japan Considers Tax Exemption for Corporate Unrealized Crypto Gains
Japan is considering exempting corporations from paying taxes on unrealized profits related to cryptocurrency assets.
The proposed measure, part of Japan's tax code reform, aims to allow companies to avoid taxes on their crypto holdings.
Еhe Japanese government plans to revise its tax code to improve the regime for companies holding cryptocurrency in the long term.
The new provision in the tax code states that corporate crypto assets will not be subject to unrealized profit taxes.
This proposal may lead to a transfer of corporate crypto holdings from foreign countries to Japan. However, this could result in potential tax loss for the Japanese government, causing uncertain damage.
The proposal will only apply to cryptocurrencies held as part of a company's assets a
nd not used for short-term trading purposes. The Japanese Blockchain Association has
called for changes in the tax regime to stimulate Web3 growth in the country and stabilize the market.
Japan has made progress in cryptocurrency taxation, canceling another tax on cryptocurrencies issued by companies.
