Two crypto lobby groups asked the government recently to reform crypto tax laws. Investors can earn up to 55% in capital gains, but this is not the case for crypto tax law reform.
Yomiuri reports that Japan will review its existing corporate crypto tax rates to encourage startups to stay in Japan.
The tax reform proposal by Japan’s ministry of economy, commerce and industry for 2023 is being considered by Japan’s financial service agency (FSA), and the ministry. It could exempt crypto-startups that issue their tokens from taxes on unrealized gains.
Startups that issue their tokens must pay taxes for any unrealized gains. The company’s holdings, as per Yomiuri, are subject to tax based on the market value at end of taxation period.
Potential tax cuts are intended to encourage startups to stay in Japan. CoinDesk reported that crypto firms may be leaving Japan due to heavy tax burdens.
Taira Masaaki, a Japanese lawmaker, confirmed the tax review via Twitter.
Two crypto lobby groups, the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association (JVCEA), , asked the government to consider lowering crypto taxes. They also proposed a 20% capital gains tax on retail investors.
Japan currently taxes capital gains up to 55%.
