The Japanese government has given the green light to a bill to exempt domestic cryptocurrency issuers from paying corporate taxes on their property.
The board currently requires these companies to pay 30% on their holdings even if they don’t make a profit through the sale.
- Japan’s ruling political party – the Liberal Democratic Party – aims to relax corporate tax laws for local cryptocurrency publishers, thus incentivizing these entities to operate in their home country.
- Akihisa Shiozaki – a law camera from the Liberal Democratic Party – called the move “a very big step forward”.
“It will be easier for different companies to do business that involves issuing tokens,” he added.
- Prime Minister Fumio Kishida’s government is expected to finalize its annual tax standards by the end of 2022 based on the LDP’s decision.
- The relaxed rules may come into effect on April 1, 2023 (the start of the new fiscal year in Japan).
- Local lobbies have it in the past urge Japanese lawmakers will stop taxing paper profits on cryptocurrency holdings, thus ending the talent exodus.
- High taxes have proven to be a burden for many home-grown startups, many of which have relocated to countries with friendlier regulations, such as Singapore.
Japan posted to impose less stringent tax rules on CryptoPotato.