Far Eastern Technology Country is Preparing to Remove Cryptocurrency Tax for Corporate Companies!

Companies in Japan will no longer have to pay taxes on unrealized cryptocurrency gains if they hold digital assets under a proposal being discussed by the country’s ruling coalition.

Japan Considering Removing Tax on Some Corporate Crypto Assets

This move aims to stem the flow of startups choosing Singapore and Dubai over Tokyo.

According to the proposed tax law change, cryptocurrencies held for purposes other than short-term trading will be exempt from corporate taxes based on their market value at the end of each fiscal year.

The exemption, discussed Tuesday by policymakers in the Liberal Democratic Party and its ruling coalition partner Komeito, will be included in the fiscal 2024 tax reform plan to be prepared this month.

Japan is a rare example of a country that taxes companies based on the market value of their cryptocurrency assets, excluding self-issued coins.

Industry observers say the rule is pushing companies that have cryptocurrencies as part of their business models into tax-friendly jurisdictions such as Singapore, Dubai and Switzerland.

Such companies include venture capital firms and operators of non-fungible token businesses that hold cryptocurrencies for payment purposes.

*This is not investment advice.