The Japanese cabinet greenlit an amendment removing taxes on unrealized cryptocurrency profits recorded by companies at fiscal year-end, part of the nation’s 2024 tax overhaul. Firms will now only owe levies when digital asset gains are realized through sales.
The policy shift seeks to boost domestic blockchain startups by aligning corporate crypto taxes with the system applied to individual investors. The reform was inspired by industry advocates’ requests and aims to position Japan as an attractive hub for global crypto ventures with more favorable policy.
The approved proposal heads to Japan’s Diet in January 2024 requiring formal legislative approval. But exemption of mark-to-market taxes represents a notable step to inject liquidity and energy into local digital asset markets.
With Asian regions like Hong Kong also eyeing crypto leadership, Japan’s elimination of corporate taxes on paper profits not yet cashed out signals an embrace of the blockchain economy. Reduced fiscal friction may help Japanese companies compete in leveraging cryptocurrency innovation.
