Japanese authorities to abolish corporate tax on unrealized gains in cryptocurrencies

Legal entities will only be able to pay fees when selling digital assets

25.12.2023 - 13:45

157

2 min

What’s new? Japan’s Cabinet has approved the abolition of tax on unrealized gains in cryptocurrencies for legal entities. Under the new regime, which will take effect on April 1, 2024, companies will only be taxed after the sale of crypto assets. Currently, fees are levied based on the difference between their market value and book value at the end of the financial year.

CoinPost’s material

What else is known? The amendment by easing the tax burden is expected to attract more foreign crypto startups and institutional investors to the country. It is expected to be finally approved at a Diet session in January next year.

The amendment was proposed by the Japan Crypto Asset Business Association (JCBA) and supported by the Financial Services Agency (FSA). JCBA also advocates for a tax reduction when converting cryptocurrencies into cash.

Earlier, the US authorities adopted new rules for accounting for crypto assets at fair value. MicroStrategy CEO Michael Saylor noted that the innovation will remove a major obstacle to corporate adoption of BTC.

South Korea’s Financial Services Commission (FCS) also updated accounting rules, requiring companies to disclose the holdings of digital assets on their balance sheet from January 1, 2024, to increase transparency.

США, Корея и Япония начали совместную разработку мер по борьбе с криптохакерами из КНДР

Полученные северокорейскими взломщиками активы используются для финансирования разработки оружия массового поражения

In June, Circle CEO Jeremy Allaire reported that the company was exploring the possibility of issuing a stablecoin in Japan. Circle is the issuer of the second most capitalized stablecoin on the crypto market (USDC).

Author: