The National Tax Agency of Japan has unveiled a decision where token issuers in the country would benefit from the new tax guidelines for corporate tax.
The National Tax Agency of Japan has drafted new corporate rules in a recent development. In a positive turn, the new rules would benefit token issuers. Hereafter according to the law revision, token issuers would be allowed not to pay corporate tax on unrealized crypto gains.
The National Tax Agency implemented the change a few months after the country removed the requirement for crypto firms to pay taxes on paper gains of self-issued tokens they held.
The timeline for the recent amendment was a long one, with discussions on crypto regulation continuing since 2022. Before this new rule, token issuers were required to pay a 30% corporate tax on even their unrealized gains.
An official notification was released recently, which confirms the tax development. Meanwhile, Japan’s crypto industry has undergone many changes in the past year. Anti-money laundering rules are in effect in the country, and the government recently launched new stablecoin rules.
The stablecoin guidelines require only banking institutions to issue stablecoins, barring other non-banking firms. Through these initiatives, Japan has been ahead on its crypto regulatory policies than other countries.
In the past, a few instances of fraud in the country had shaken authorities, after which serious discussions on crypto regulation ensued. With the current crypto climate, Japan is being considered a favorable destination by the crypto industry for further investments.