Domestic firms are required to pay tax on paper gains from their cryptocurrency holdings but under proposed tax reforms, would only need to do so when they sell the asset.
Correction: The article has been updated to reflect that the proposed tax reform still needs to pass the national legislature, also known as the Japan National Diet.
The Japanese government is pushing ahead with a tax reform that would save firms from paying taxes on “unrealized gains” from cryptocurrency holdings after the cabinet reportedly approved a revision to the national tax regime for digital assets.
According to local reports, Japan’s government unveiled the new tax reform on Dec. 22 following a cabinet meeting, with the new changes potentially set for April 1, 2024 — the start of Japan’s financial year. The bill, however, would need to be submitted to lawmakers in January and would need to be approved by both the House of Representatives and the House of Councilors.
