Benzinga - Japan's National Tax Agency stated that cryptocurrency issuers in the country will not be required to pay capital gains taxes on unrealized gains.
This follows the approval of a proposal last December by the tax committee of the ruling Liberal Democratic Party (LDP) to exempt crypto startups from issuing their own tokens from corporate taxes on unrealized gains.
The announcement made on June 20, is part of Japan's ongoing efforts to review its tax treatment of cryptocurrencies, which was initiated last year with the aim of encouraging startups to stay in the country.
This initiative was prompted by the apparent exodus of companies due to heavy tax burdens.
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The document indicated a partial revision from a previous stipulation that imposed a capital gains tax of approximately 35% on token issuers — both on their own tokens and on unrealized gains.
The tax exemption will now also extend to unrealized gains from holding applicable cryptocurrency continuously from the date of issuance or from implementing certain technical measures to prevent its transfer to others.
Industry associations in Japan have been advocating for additional tax reforms, including taxing crypto gains at the same rate as stocks and taxing individuals only when crypto gains are converted into fiat currency.
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