The National Tax Agency in Japan has announced revisions to the country’s corporate tax regulations, stating that unrealized gains from cryptocurrencies issued by companies will no longer be taxed. The agency outlined that these coins will be excluded from a company’s asset valuation under certain conditions. The move is seen as a positive one for businesses operating in the cryptocurrency space, as it improves the overall business environment. The current law in Japan taxes crypto assets held by companies as unrealized gains at the end of a tax period, which has caused difficulties for crypto companies and hindered innovation. The relaxed rules for taxing company-issued digital currencies were included in the ruling party’s tax reform plan for 2023. In order to qualify for the new tax exemption, a company must be the issuer of the cryptocurrency and continuously hold it after issuance while the asset is subject to transfer restrictions. The Japanese crypto community has welcomed the change, although some members believe that the tax relief should also extend to tokens issued by other companies to support domestic projects.
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