Token Issuers in Japan to Be Exempt from 30% Crypto Tax on Unrealized Gains
Japanese token issuers have been exempted from corporate taxes on unrealized cryptocurrency gains.
In a recent announcement, the country's National Tax Agency revealed that it has revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20.
The move comes as Japan seeks to boost its blockchain and crypto sectors amid a push for "new capitalism", according to Prime Minister Fumio Kishida.
Crypto investors will still be liable to pay a maximum of 55% income tax on any earnings over JPY200,000 ($1,797) related to cryptocurrency, classified as "miscellaneous income."
Notably, the exemption only applies to companies that issue their own tokens, not those that invest in other digital currencies.
The tax exemption comes after legislators in Japan last August began discussing new crypto tax rules as part of broader tax reforms for 2023, though the tax authority waited until now to give final approval.
Under the new rules, firms issuing tokens are exempt from paying a set 30% corporate tax rate on their holdings, reflecting the ruling Liberal Democratic Party's view that the move makes it "easier for various companies to do business that involves issuing tokens."
Japan already has some of the strictest crypto regulations in the world.
Following some major crypto failures, including the Mt. Gox and Coincheck hacks, the country's regulator even further tightened the rules on crypto exchanges.
There are now more than 20 registered cryptocurrency exchanges in Japan, but there have also been reports of delays in the establishment process due to heightened regulatory thresholds.
Additionally, the country has banned the issuance of stablecoins by non-banking institutions.
Since early
Read more on cryptonews.com
