Japan to Exempt Companies From Unrealized Crypto Gains Tax – Report

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By BitcoinWiki News

Key Takeaways:

– Japanese lawmakers discussing plans to exempt companies from paying tax on unrealized cryptocurrency gains
– Proposal to be included in fiscal 2024 tax reform plan
– Exemption applies to Japanese firms holding digital assets for purposes other than short-term trading
– Exemption based on mark-to-market valuations at the end of fiscal year
– Applies to VC firms, non-fungible tokens businesses, blockchain firms, and crypto issuers
– National Tax Agency notice in June that crypto issuers will not have to pay capital gains taxes on unrealized gains
– Japan reviewing crypto tax treatment to encourage companies to remain in the country
– Financial Services Agency (FSA) submitted legislation-change requests to change crypto tax rules
– Japan Association of New Economy (JANE) asked government to reduce tax rates in 2024 to encourage growth and increase tax revenue


Japanese lawmakers are discussing a proposal to exempt companies from paying tax on unrealized cryptocurrency gains in the fiscal 2024 tax reform plan. The exemption applies to Japanese firms holding digital assets for purposes other than short-term trading and is based on mark-to-market valuations at the end of the fiscal year. Various types of companies, including VC firms, non-fungible token businesses, and blockchain firms, are eligible for this tax exemption. Japan has been reviewing its crypto tax treatment to encourage companies to remain in the country, with the National Tax Agency previously exempting crypto issuers from paying capital gains taxes on unrealized gains. This move comes after the Financial Services Agency and the Japan Association of New Economy pushed for tax reforms to encourage growth and increase tax revenue.

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