Japanese companies issuing cryptocurrencies are currently required to pay a corporate tax of 30% on the crypto assets they hold, even if they do not sell any tokens. According to Bloomberg’s report citing Liberal Democratic Party lawyer Akihisa Shiozaki, Japan’s ruling Liberal Democratic Party approved a proposal on Thursday to exempt cryptocurrency issuers from unrealized capital gains tax on tokens they hold.
Shiozaki told Bloomberg that the proposal, which is being reviewed by the ruling party’s tax committee, aims to improve conditions for crypto issuing companies.
The administration of Japanese Prime Minister Fumio Kishida is expected to finalize annual tax policy guidelines before the end of the year, and tax law amendments are usually submitted to parliament in January.
Kishida, who became Prime Minister of Japan in September 2021, has been a supporter of digital finance and blockchain technology adoption and has recently announced further investment in the NFT and Metaverse industry. Kishida also included cryptocurrencies in his plans to revive the economy.
