Local media reported that the Japanese government has approved a 2024 tax reform aimed at exempting companies from paying taxes on unrealized gains if they hold virtual currency assets for the long term. report.
Nikkei and Coin Post report On Saturday, the Cabinet approved amendments that apply to companies that own virtual currencies issued by third parties on Friday.
Currently, profits and losses for third-party issued virtual currencies held by companies are calculated based on the difference between the market value and the book value at the end of the fiscal year. According to media reports, the proposed amendments will stipulate that such mark-to-market valuations will no longer apply if a company holds assets for a long time.
This means that companies will only be taxed on profits generated from the sale of virtual currencies, the report said.
According to the report, the 2024 amendment bill will be submitted to the regular Diet session in January 2024 and will need to be approved by the House of Representatives and the House of Councilors.
“Possession of” [crypto] “Assets issued by other companies that are considered short-term holdings will still be subject to year-end unrealized gains tax,” Daiki Moriyama, director of Oasis, a gaming blockchain construction company based in Japan and Singapore, told The Block. .
“The fact that the Japanese government has implemented tax reform for the second year in a row and has shown an appetite for the growth of Web3 businesses is extremely important to everyone involved in Web3 businesses around the world,” Moriyama said.
The possibility of such changes in the tax system will occur after the national tax authorities clarified In June, it was announced that crypto issuers would no longer have to pay capital gains taxes of around 35% on unrealized profits.
In June, Japanese Prime Minister Fumio Kishida Said Web3 has the potential to transform the traditional Internet framework and contribute to social change, and the government is focusing on creating an environment conducive to promoting Web3.
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