Japan's Financial Services Agency Proposes Tax Exemption for Crypto Firms in Regulatory Overhaul
Summary:
Japan's Financial Services Agency (FSA) has proposed changes to the tax code for digital assets, specifically aiming to exempt domestic firms from the annual "unrealized gains" tax on cryptocurrencies. The reform, supported by the Ministry of Economy, Trade, and Industry, aims to promote blockchain technology and Web3 development. Advocates in the Japanese crypto industry have long called for these changes, including converting personal crypto asset trading profits taxation to self-assessment separate taxation and eliminating income tax on profits from individual crypto asset exchanges.
Japan's Financial Services Agency (FSA) has taken the initiative to propose changes to the tax code that applies to digital assets, a move that would allow domestic firms to be exempt from the annual "unrealized gains" tax on cryptocurrencies. The FSA's 16-page document also highlights the support of the Ministry of Economy, Trade, and Industry for this amendment. The proposed reform, aimed at promoting blockchain technology and fostering Web3 development, has been a long-time demand from advocates in the Japanese crypto industry. These demands include converting personal crypto asset trading profits taxation to self-assessment separate taxation with a uniform tax rate of 20%, along with eliminating income tax on profits from individual crypto asset exchanges.
Published At
9/5/2023 8:26:40 AM
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