The Japanese government has passed a bill to exempt local cryptocurrency issuers from paying corporate taxes on their holdings.
The governing body currently requires such companies to pay 30% of their properties, even if they have not made a profit through a sale.
Japan’s ruling political party, the Liberal Democratic Party, aims to ease corporate tax law for domestic cryptocurrency issuers and thereby encourage such entities to operate in their home country.
Akihisa Shiozaki, a LDP lawmaker, described the move as a “big step forward.”
“It will be easier for various companies to do business that involves issuing tokens,” he added.
Prime Minister Fumio Kishida’s cabinet is expected to complete its annual tax standards by the end of 2022 based on decisions by the Liberal Democratic Party. The relaxed rules could take effect from April 1, 2023 (the start of the new fiscal year in Japan). Local lobby groups have already urged Japanese lawmakers must stop taxing paper profits on cryptocurrency holdings and thus stop the brain drain.
The high taxes have proven to be a burden on numerous domestic startups, many of which have relocated to countries with friendlier regulations, such as Singapore.
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This post Japan will enforce less stringent crypto tax rules
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