In recent years, several promising crypto entities based in Japan have had to leave the country to settle elsewhere. They made this decision in particular because of the 30% tax imposed on crypto companies. Indeed, any Japanese company issuing crypto must currently pay this tax, whether it has made a profit or not. But, Japan has decided to review its position, in its desire to promote and develop crypto locally.
The looser tax rules for crypto companies
Japan has often been demanding with crypto entities in recent years. A few months ago, he imposed strict rules for the listing of tokens on crypto exchanges. But, last October, Japanese regulators decided to make these rules more flexible to promote the development of the sector. Once again today, they decide to ease the tax requirements they impose on local crypto companies.
In effect, a tweet from Cointelegraph revealed that Japanese regulators are ready to review these tax requirements. Japan’s financial regulator introduced the tax relief proposal last August. The tax committee of the ruling party, LDP, gave its approval to this proposal during a recent meeting. The latter took place precisely on December 15, 2022.
The proposal states that crypto companies will no longer have to pay taxes on their earnings. They will no longer have to pay a 30% tax for making profits by issuing or holding tokens. This decision aims to support the efforts of Prime Minister Fumio Kishida who is trying to strengthen the country’s economy.
The government has taken another decision to boost the development of the finance and technology sectors. Indeed, it provides for lighter levies for individuals who invest in shares.
According to LDP lawmaker Akihisa Shiozaki, the government’s decision is “a very big step forward“. “It will become easier for various companies to do business that involves issuing tokensShiozaki pointed out.
The tax relief measures will be submitted to the Japanese parliament next month. Their entry into force should take place from April, during the next fiscal year of Japan. With these new measures, there could be more crypto projects launched by local businesses in Japan.
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