Japan grants tax exemption to token issuers
The National Tax Agency in Japan recently revised a law on June 20, exempting token issuers from paying corporate taxes on unrealized cryptocurrency gains. This revision aims to ease the burden on crypto token issuers and create a more favorable business environment in Japan. Under the new rules, crypto token issuers are exempt from paying corporate tax on unrealized gains if two conditions are met. Firstly, the token s must be issued by the firm and continuously held since issuance. Secondly, the token s must be subject to “transfer restrictions” from issuance. The proposal for these revisions was approved by Japan’s Liberal Democratic Party’s (LDP) tax committee in December 2022. It was subsequently included in the ruling party’s tax reform outline for 2023, with the final approval from the tax authority granted earlier last week. Previously, token issuers were required to pay a hefty 30% tax on unrealized gains for token s they held if those tok...