The Japanese government has recently approved a revision to the tax law that applies to companies that hold digital assets issued by third parties. Starting April 1, 2024, companies will no longer be subjected to tax on unrealized profits from these holdings.
The Cabinet approved the new tax system on December 22, and it was reported by local news outlet Nikkei. Only the realized profit will be taxed now, following the “mark-to-market valuation” of the company’s assets. This means that any asset, including cryptocurrency, will be valued at approximately 10% of its worth at the end of each fiscal year.
In June, Japan’s tax agency clarified that crypto issuers were no longer subject to the 35% capital gains tax. This new revision to the tax law is beneficial for companies who hold digital assets, as it eliminates tax obligations on unrealized gains.
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Tags: Japan, Corporate Tax, Cryptocurrency