According to local media, the Japanese government has approved a 2024 tax system amendment that would exclude companies from paying taxes on unrealized cryptocurrency profits if they hold the assets for a long period of time. report.
Nikkei and Coinpost reported On Saturday, the Cabinet said it had approved amendments on Friday that would apply to companies owning cryptocurrencies issued by third parties.
Currently, third-party issued cryptocurrency held by a company is considered profit or loss based on the difference between market value and book value at the end of the fiscal year. According to media reports, this amendment stipulates that market valuation will no longer be applied when a company holds assets for a long period of time.
This means businesses will only be taxed on profits generated from cryptocurrency sales, the report said.
According to the report, the 2024 fiscal year amendment must be submitted to the regular National Assembly in January 2024 and approved by the House of Representatives and the House of Councilors.
“Year-end unrealized gain taxation will continue to apply to holdings of (crypto) assets issued by other companies that are considered short-term holdings,” said Daiki Moriyama, director of Oasys, a gaming blockchain builder based in Japan and Singapore. . block it.
“The fact that the Japanese government has demonstrated its commitment to growing Web3 businesses by enacting tax reform for the second year in a row is very important to all Web3 business stakeholders around the world,” Moriyama said.
These potential changes to the tax system come after the country’s tax authorities. clarify In June, cryptocurrency issuers will no longer have to pay capital gains tax of around 35% on unrealized profits.
Last June, Japanese Prime Minister Fumio Kishida said web3 has the potential to transform traditional Internet frameworks and contribute to social change, and the government is committed to creating an environment conducive to promoting web3.
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