Now crypto companies will not be required to pay high amounts of taxes against their unrealized gains from Crypto businesses.
Japan is an island country in East Asia. Under the current Japanese crypto law, people can trade & invest in cryptocurrencies under the Payment Services Act. Under the Payment Services Act, cryptocurrencies can be used to pay unspecified persons. Since 2017, Japanese companies showed a significant inclination toward the Japanese crypto market, because of the country’s crypto-friendly laws.
On 25 June 2023, the National Tax Agency of Japan announced a new crypto tax rule for crypto companies. Under the new laws, crypto companies will not be required to pay a high amount of taxes corresponding to unrealized gains.
But in the end phase of the income tax return, companies will be required to pay tax against their gains. In short, crypto companies will get a better opportunity to offset taxes with the help of losses on their other businesses i.e uniform tax return against uniform revenue.
Chinese crypto blogger Colin Wu reported that such rules have been introduced by the Japanese tax agency to bring a crypto-friendly environment for the crypto firms so that companies can establish their business with more perfection in the country.
It is worth it to note that the current situation is not good for the crypto companies or new crypto startups to get started with America, known as a hub of digital innovations in the world.
After the downfall & bankruptcy of several crypto companies, the United States Securities Exchange Commission (SEC) took harsh regulatory actions against crypto companies, without providing any clarity.
Just a few weeks back, Hong Kong government officials invited crypto companies to set up their business in the jurisdiction of Hong Kong amid increasing regulatory uncertainty in the US.
These things are showing that countries are open to adopting the crypto & blockchain sector and they are taking this situation as an opportunity.