The Japanese government has proposed Companies will see a new tax law on crypto currencies in 2023.
Watanabe SOTA, CEO of Web3 infrastructure company Stake Technologies Pte said earlier that Japan should reduce corporate taxes on crypto-businesses to discourage entrepreneurs leaving the country.
The Japanese government proposed that a 20% tax be applied to income taxes on cryptocurrency gains made by individuals investors. It also offered the option of carrying forward losses for the three years following the year. The Japanese government currently imposes an additional 55% tax on digital investors.
As the Japanese government reviews the corporate tax system, the reform of the tax law considers the development in cryptocurrencies in Japan. It does not intend to make it more difficult for digital asset firms to operate.
According to the proposal, companies with cryptocurrency assets will be subject to tax on their profits. Crypto derivatives markets must follow the same tax structure.
The Japanese government stated that some Japanese companies had moved to other countries due to high taxes and the loss of talent.
Web3 infrastructure company Stake Technologies Pte has relocated the company in Singapore to 2020. He wants the Japanese government, therefore, to revise the corporate income tax beginning next year. He said that he would return the company to his country if this happened.
Japan must therefore adopt loose tax rules in order to prevent the loss of digital asset companies.
Japanese lawmakers have recently announced plans to amend Law on Punishment for Organised Crimes and Control of Proceeds (1999) to allow courts and law enforcement agencies to confiscate cryptocurrency linked to criminal activities.
Image source: Shutterstock