Japan scraps corporate tax on unrealized crypto profits: Report

Japanese firms will reportedly no longer be required to pay tax on “unrealized gains" from cryptocurrency holdings as of April next year after the Cabinet reportedly approved a revision to the national tax regime for digital assets.

According to local reports, Japan’s government unveiled the new tax reform on Dec. 22 following a cabinet meeting, with the new changes set for April 1, 2024 — the start of Japan’s financial year.

Previously, cryptocurrencies held by corporations received from third parties needed to be reported — based on the difference between market value and book value, regardless of whether the firm sold the cryptocurrency.

But now corporations will only be taxed on profits from the sale of cryptocurrencies, similar to what retail investors must comply with under Japanese tax laws.

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Dec-25-2023 09:28:00 AM