Token issuers in Japan are exempt from a 30% tax on unrealized gains from cryptocurrency transactions.
Japan’s National Tax Agency revised the corporate tax rules for token issuers that dealt with unrealized profits from cryptocurrencies they issued and stored. The government approved the amendment almost six months ago, but the tax agency has yet to give final approval for it to take effect.
The changes to the tax rules for digital asset transactions were discussed as part of a wider tax reform planned for 2023 in Japan. The Liberal Democratic Party, which has a majority in the country’s parliament, expects to use tax breaks to ease the business of issuing and processing digital assets.
Recall that Japan’s cryptocurrency industry has been actively transforming in the past few years. For example, the government’s Web3 study group has been working on measures to create a more friendly environment for cryptocurrency businesses. This is already yielding some results; for example, Japan’s largest financial group announced the launch of a stablecoin platform, and Japan’s largest airline launched an NFT marketplace.
