Japan to Exempt Companies From Unrealized Crypto Gains Tax – Report
Japan will reportedly exempt companies from taxation on gains from unrealized crypto investments. This comes after the government recently took steps to amend existing crypto tax regulations.
According to reports on Tuesday, the Japanese government is finalizing changes to existing crypto tax regulations that will exempt companies from taxation on profits from unrealized investments in cryptocurrencies. If the changes are adopted, companies such as crypto-oriented funds and exchanges will not need to pay taxes on gains from unrealized investments.
The Japanese government has been increasing its scrutiny of the crypto industry since it declared Bitcoin to be legal tender in April 2018. Several amendments to existing regulations have been proposed since then, including the aforementioned tax exemptions.
The proposed changes come at a time when Japan is becoming increasingly crypto-friendly. Earlier this month, the government announced plans to form a special committee to study future measures to regulate the domestic crypto industry. Last year, Japan’s Financial Services Agency granted the first license to a crypto exchange, effectively recognizing it as a legitimate business.