Japan's National Tax Agency has revised its corporate tax rules to offer a 30% tax break to companies issuing cryptocurrencies. The revision provides a tax exemption to companies issuing cryptocurrencies, meaning they will no longer be taxed on unrealized gains at the end of a tax period. The NTA explained that companies' holdings would be excluded from the market evaluation of a company's assets if specific terms are met. The ruling Liberal Democratic Party approved the proposal for the revised rules in December to improve business conditions for companies issuing cryptocurrencies in Japan.
Japan Offers Crypto Companies A 30% Tax Break. Japan Introduces Stricter AML Measures
Japan's crypto industry has implemented stricter anti-money laundering (AML) procedures since June 1. This was done to align Japan's legal framework with international crypto laws after its AML measures were deemed insufficient by the Financial Action Task Force. To monitor the movement of illicit funds under the guise of legal crypto transactions, the cabinet revised the relevant crypto rules in December.
As a significant player in the global crypto market, Japan's government was compelled to address the risks associated with the industry. Part of Japan's stricter policy is the enforcement of the "Travel Rule," which aims to ensure the precise monitoring of illicit proceeds. Under this rule, any financial institution processing a crypto transfer exceeding $3,000 must share customer information with the recipient exchange or institution.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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