Japan is introducing comprehensive tax reform for the crypto industry

Japan is facing a significant change to its tax policy that could change how companies deal with cryptocurrencies. According to a recent cabinet decision, the government wants to abolish the tax on unrealized crypto profits for companies. This proposal, which still needs to be approved by national lawmakers, could ease the burden on companies trading digital assets and make Japan a more conducive environment for crypto innovation.

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Current situation and proposed crypto changes

Under current law, Japanese companies must pay taxes on the paper profits from their cryptocurrency holdings, a rule that poses a major burden for companies investing in these volatile assets. The proposed reform aims to apply this tax only to profits actually made from the sale of cryptocurrencies, in line with the tax rules that already apply to retail investors. This move is intended to stimulate investment and development in the crypto and Web3 space.

If passed, the law would represent a significant change for companies operating in the crypto space. Not only would this reduce the tax burden, but it would also incentivize more companies to invest and innovate in crypto and related technologies.

The proposal to eliminate the tax on unrealized crypto profits is an important indicator of Japan’s willingness to take a leading role in the crypto industry. The policy, which could take effect in April 2024, is part of a move that is likely to draw global attention from both investors and other governments concerned with taxing digital assets.

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Tax in the Netherlands

Of course, taxes aren’t just a thing in Japan. Everyone in the Netherlands has to believe in it every year. The end of the year is approaching and that means crypto investors should pay attention. The deadline for your investments is January 1st, 00:00. This year some important rules have changed. If you want to learn more about your taxes and crypto, check out this article where we dive deeper into the facts.

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