Japan introduces new tax rules for crypto businesses
Japan introduces new tax rules for crypto businesses
Japan is relaxing its tax policy for companies providing services in the digital asset market.
Japan's National Tax Agency said that unrealized gains from cryptocurrency issuance will not be included in taxable income, which could make it easier to run a cryptocurrency business in Japan.
This area remains the most uncertain, both in terms of regulation and taxation. Even with the likelihood of high returns on investment in the crypto sector, only the introduction of cryptocurrency-friendly laws can attract businesses and international companies, the tax agency said.
Under the current regulations, companies that own cryptocurrencies are taxed on unrealized gains at the end of the tax year. This policy is extremely disadvantageous for companies operating in Japan.
The tax authority also stated that the valuation of the profits of companies issuing their own digital currency was included in its market valuation. Now, the valuation of the token will not be included in the value of companies, according to Cryptonews.
Such changes will help companies reduce the pressure to include the market price of their own tokens in their bottom line.
Japan has decided to revise its tax policy on the crypto industry in order to move the country forward in this field and make it a hub for digital assets.
Earlier, we reported that Coincheck's listing on the Nasdaq had been postponed until 2024.
