Japan Plans to Drop Tax on Crypto Profits

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Japan’s Cabinet has given the green light to a bill exempting companies from taxes on unrealized profits from digital asset transactions, as reported by local media.

The proposal is set to be presented to lawmakers in January and will undergo a vote in the House of Representatives and the House of Councilors.

If approved, these provisions will take effect on April 1, 2024. The current tax regulations, which calculate tax on company-held cryptocurrencies based on the market value-book value difference, would be reformed to align with retail investor requirements, allowing payments to the state only on realized profits.

This move is anticipated to encourage more firms to participate in Web3 projects in Japan.