Japan’s ruling party has agreed to relax corporate tax rules for crypto assets, according to a report by Bloomberg on Thursday, citing statements from a party politician. The agreement comes amid the current market turmoil exacerbated by FTX’s implosion.
Japan to Ease Corporate Tax Rules
Per the report, the Liberal Democratic Party’s tax committee today approved a proposal to exempt businesses from paying taxes for paper gains on crypto assets that they hold after issuing them.
“This is a very big step forward. It will become easier for various companies to do business that involves issuing tokens,” Akihisa Shiozaki, an LDP lawmaker who is a member of the party’s Web3 project team, said at a briefing.
Currently, in Japan, gains from crypto assets, including unrealized gains, are subject to a corporate tax of about 30%.
The report stated that Prime Minister Fumio Kishida’s administration would complete its annual tax policy guidelines by year-end based on the ruling party’s decisions.
Legislation is usually submitted to parliament in January to “rewrite tax codes for a new fiscal year starting April 1,” the report added.
The development shows that Japanese lawmakers are starting to show support for the nascent asset class to drive technological growth in the country despite the crypto market facing major turbulence in recent times.
Japan Relaxes Listing Rules
Meanwhile, Japan has taken several measures in recent times to revive the crypto market in the country.
In October, Japan said it is also planning to relax crypto rules by allowing crypto exchanges to list tokens without going through a lengthy screening process unless the tokens are new to the Japanese market.
At the time, Genki Oda, Vice chairman of Japan’s Virtual and Crypto Assets Exchange Association (JVCEA), said he hoped the rule would help “revitalize Japan’s crypto assets market.”
The new developments are expected to attract several crypto exchanges that have already pulled out of the country due to its harsh stance on the sector.
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