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<ul>
 <li>In the latest cabinet meeting held on December 22, the Japanese government finally approved the draft of crypto tax reform for the fiscal year 2024.</li>
 <li>The revision alters the scope of the year-end valuation application under the Corporate Tax Law.</li>
 <li>Japan has always maintained a crypto-friendly approach, making it a destination for crypto companies.</li>
</ul>
<p><strong>In the latest cabinet meeting held on December 22, Japan approved the tax reform draft for the year 2024: Here are the details of the tax reform!</strong></p>
<h2 id="strong-japan-to-introduce-crypto-tax-reform-in-2024-strong"><strong>Japan to Introduce Crypto Tax Reform in 2024</strong></h2>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-133034" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=696%2C392&amp;quality=70&amp;ssl=1" alt="japan" width="696" height="392" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?w=1920&amp;quality=70&amp;ssl=1 1920w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=300%2C169&amp;quality=70&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=1024%2C576&amp;quality=70&amp;ssl=1 1024w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=1536%2C864&amp;quality=70&amp;ssl=1 1536w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=150%2C84&amp;quality=70&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=696%2C392&amp;quality=70&amp;ssl=1 696w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?resize=1068%2C601&amp;quality=70&amp;ssl=1 1068w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/12/japan.webp?w=1392&amp;quality=70&amp;ssl=1 1392w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></p>
<p>In the latest cabinet meeting held on December 22, the Japanese government finally approved the draft of crypto tax reform for the fiscal year 2024. This reform came with a significant regulation affecting companies holding crypto assets. The regulation eliminates the year-end valuation tax previously applied to companies holding crypto assets (virtual currencies) issued by third parties.</p>
<p>As a result, companies will now be taxed on profits derived from the sale of virtual currencies and tokens, aligning with the tax system applicable to individual investors. This regulation aims to alleviate the tax burden on companies holding and operating crypto assets.</p>
<p>The revision changes the scope of the year-end valuation application under the Corporate Tax Law. Previously, companies recorded gains or losses based on the difference between the market value and book value of crypto assets at the end of the fiscal year. The new policy excludes this year-end valuation application if it is assumed that the asset is held continuously.</p>
<p>This tax reform partially emerged in response to an application made by the Japan Crypto Asset Business Association (JCBA) for the 2024 tax reform. This change will support the growth of Web3, encourage domestic ventures using blockchain technology, and attract international projects.</p>
<p>Last year’s tax reform exempted virtual currencies issued by companies from the year-end valuation tax. However, this year’s revision took place under the influence of increasing demands for equal treatment of cryptocurrencies issued by other companies.</p>
<h2 id="strong-will-this-increase-crypto-adoption-in-japan-strong"><strong>Will This Increase Crypto Adoption in Japan?</strong></h2>
<p>This includes plans for the 2024 tax reform, reducing income taxes and local taxes per person from June 2024, reducing income taxes for companies, and establishing new tax systems for strategic sectors and innovation. This could lead to a significant decrease of 3,874.3 billion yen, the third-largest drop since the fiscal year 1989. The law must be approved by both the House of Representatives and the House of Councillors.</p>
<p>This tax reform takes a significant step in response to the demands of crypto investors, introducing separate taxation (20%) and carryforward loss deductions. However, negotiations for future considerations are expected regarding profit and loss calculations on crypto asset transactions, lump-sum taxation for converting crypto assets to legal currency transactions, and carryforward deductions for the subsequent three years from the beginning of the following year. The development of the corporate tax system is expected to trigger effective discussions on further tax reforms in the crypto asset space.</p>
<p>Japan has always maintained a crypto-friendly approach, making it a destination for crypto companies. The country has been prompt in making significant reforms. Earlier this year, Japan allowed VC firms to directly invest in cryptocurrencies.</p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com/japan-to-introduce-tax-reform-for-bitcoin-and-cryptocurrencies-in-2024/">Japan to Introduce Tax Reform for Bitcoin and Cryptocurrencies in 2024!</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com">COINOTAG NEWS</a>.</p>
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Japan to Introduce Tax Reform for Bitcoin and Cryptocurrencies in 2024!

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