- Japan abolishes corporate tax on unrealized profits
- Businesses holding unrealized profits from cryptocurrency assets will no longer pay taxes on those assets from April 1, 2024.
According to the latest news from local media, Japan is reportedly abolishing corporate tax on unrealized profits from cryptocurrency holdings.
Japan revises cryptocurrency corporate tax law
According to a news update, companies and institutions holding cryptocurrencies will not pay taxes on “unrealized profits” from April 2024.
The cabinet approved the tax changes on December 22, local media outlet Nikkei reported. The new tax system will take effect on April 1, 2024, when Japan’s fiscal year begins.
This follows the Japanese government’s approval of changes to the national tax law applicable to companies holding digital assets issued by third parties. Companies are set up to be taxed only on profits realized after sales.
By law, corporate cryptocurrency holders are subject to tax on the “market value” of their assets each fiscal year. However, due to the amendment, companies holding unrealized profits from cryptocurrency will not be subject to this tax.
In June, Japan’s National Tax Agency said cryptocurrency issuers would no longer be subject to a 35% capital gains tax.