It seems that Japanese authorities want to create more favorable conditions for corporations that own crypto.
The Japanese Financial Services Agency and the Ministry of Economy, Trade and Industry (METI) are planning to review virtual currency taxation laws, which are relevant to corporate entities.
According to the news report shared by the local news portal Yomiuri, Japan’s regulatory organ aims to reconsider tax implementation for newly established companies before launching a new crypto tax reform in 2023.
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Currently, Japan is imposing 30% crypto taxes on cryptocurrencies, which according to some sources, made young crypto companies leave the country.
The local news report notifies that many new businesses create their own tokens to “raise funds and develop their businesses”. Some of those tokens are sold, while some of them are kept by the company.
Based on current laws, hefty taxes are applied to tokens, which are kept by the company.
The Yomiuri news report notes that authorities are trying to find a way to attract crypto startups rather than chase them away.
Under the new system being considered by the Financial Services Agency and others, crypto assets owned by companies that issue them will be excluded from the market valuation at the end of the term and will be taxed only when profits are generated from sales.
One of Japan’s lawmakers, Taira Masaaki, took to Twitter to confirm this news.
At the beginning of this month, The Japan Crypto-Asset Business Association (JCBA) and the Japan Crypto-Asset Exchange Association (JVCEA) issued a tax request reform to lower crypto earning taxes for individual investors. The associations are asking the authorities to lower crypto gains taxes from 55% to 20%.
The reconsideration of both individual and corporate taxation will determine how digital assets will be viewed in Japan. Moreover, it will set the tone for how the Web3 industry will be viewed by the government, in general.
This article was originally published in Bitdegree and can be viewed here:
https://www.bitdegree.org/crypto/news/japan-to-review-corporate-crypto-tax-laws
