CRYPT — On June 20, Japan’s National Tax Agency released a publication that included part of its revised corporate tax standards. They eliminate taxes previously imposed on unrealized gains on corporate-issued crypto assets and incorporate a new set of standards that issuers of digital tokens are required to follow. The new tax rules “will make it easier for cryptocurrency-related businesses to do business in Japan,” according to industry expert Colin Wu. The most recent tax relief follows the successful passage of a plan to prevent cryptocurrency companies from having to pay taxes on unrealized “paper gains” on tokens they issued and held in their possession.
It has been decided that Japanese fintech companies that issue tokens will not be subject to the standard 30% tax rate on their holdings. Due to regulations that currently impose taxes on unrealized gains, many companies have moved their overseas operations to more business-friendly jurisdictions. According to local media reports, “this represents a step forward in improving the business environment,” despite the fact that there are still some difficulties to be resolved in order to simplify the operations of crypto companies in Japan.
Two basic conditions must be met to avoid paying taxes on crypto tokens. The company must be the one issuing the tokens, the tokens must be kept permanently from the time they were issued, and transfer restrictions must be in place. The crypto community has reacted well to the most recent measures taken by the government. Astar Network (ASTR) creator Sota Watanabe, who defended the tax adjustment, commented, “At the moment, people who want to do something like Astar can now do it without leaving the country.”
I want to have fruitful conversations with political figures and administrative officials. Additionally, he said he intends to change the taxation associated with owning tokens produced by other companies “because it is an impediment to the national expansion of projects.” Since the beginning of June, Japan has been working to comply with the standards set by the Financial Action Task Force (FATF) by imposing stricter AML (anti-money laundering) regulations.