Japan is set to approve a revision to its taxation law that will provide tax relief for companies holding cryptocurrency on their books. The reforms, if approved, will come into effect in the 2024 fiscal year. The revision includes specific conditions for assessment and inclusion, such as requiring firms to hold cryptocurrency issued by a third party. This change will affect the year-end market value assessment through the Corporate Tax Law.
Currently, companies in Japan are required to pay a fixed 30% tax on any cryptocurrency they hold, regardless of whether it has generated a capital gain. However, under the proposed tax code, domestic companies holding crypto assets for reasons other than short-term trading would be exempt from corporate taxes on unrealized gains.
The market value assessment will no longer apply if a domestic firm holds cryptocurrency continuously. However, if the company decides to sell off its crypto holdings, it will be subject to taxation. These reforms are a result of initiatives by organizations such as the Japan Cryptocurrency Business Association and the Japan Blockchain Association, which have been calling for reform in Japan’s corporate tax code and frameworks specific to cryptocurrency.
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| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇯🇵 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | Japan Blockchain Association, Japan Cryptocurrency Business Association |
| Currencies | None |
| Securities | None |
