Two crypto lobby groups recently asked the government to change the country’s Corporate Crypto Tax laws. Currently, investors can pay up to 55% on capital gains when they sell crypto.
On Wednesday, Yomiuri, a local newspaper, said that Japan would look at its current corporate crypto tax rates to keep startups in the country.
Japan’s financial services agency (FSA) and ministry of economy, trade, and industry are thinking about a tax reform plan for 2023 that could exempt crypto startups that issue their own tokens from paying taxes on unrealized gains.
Yomiuri says that under the current system, startups that issue their own tokens must pay taxes on any unrealized gains from tokens they may be holding on to. This is because the company’s holdings are taxed based on their market value at the end of the taxation period.
The possible tax cut is meant to make it easier for startups to stay in Japan. In December 2021, It was gathered that crypto firms might leave the country because of the high taxes.
The tax review seemed to be confirmed by Japanese lawmaker Taira Masaaki on Twitter.
The Japan Crypto-Asset Business Association (JBCA) and the Japan Crypto-Asset Exchange Association (JVCEA), two crypto lobby groups in the country, asked the government earlier this month to think about lowering crypto taxes. They also suggested a 20% capital gains tax for retail investors.
At the moment, up to 55% of capital gains are taxed in Japan.
