Japan’s regulator proposes to ease taxation of crypto companies

The easing of the rules is aimed at implementing the concept of “New Capitalism” from Japanese Prime Minister Fumio Kishida

01.09.2022 - 12:05

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What’s new? Japan’s Financial Services Agency (FSA) has proposed easing corporate tax rules for cryptocurrency assets, as well as reducing taxes for individual investors in the stock market. The measures are meant to support Prime Minister Fumio Kishida’s efforts to revive the economy. This is reported by Bloomberg.

News on the Bloomberg website

What innovations are envisioned? According to Bloomberg, the regulator proposes to exempt companies from paying taxes on paper gains from cryptocurrencies that are held by firms after issuing them. Currently, profits from owning cryptocurrencies, including unrealized gains, are subject to a corporate tax of about 30%.

The FSA has also called for an expansion of the tax break program for individual investors, specifically to exempt a portion of individuals’ investment gains and dividends from capital gains tax for a certain period of time.

These measures are intended to support Kishida’s “New Capitalism” vision, under which he promised to double the wealth of households and support Web 3.0 business development within the country. The final decision on the proposed benefits will be made by a special commission toward the end of 2022.

Earlier, the FSA and Japan’s Ministry of Economy, Trade and Industry allowed the possibility of making changes to the digital asset taxation system for corporate entities ahead of the 2023 tax reform. The goal is to lower the tax rate and prevent the outflow of promising startups abroad.

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