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Japan to Introduce Business-Friendly Crypto Tax Law in 2023

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Japan to Introduce Business-Friendly Crypto Tax Law in 2023

The Japanese government has offers a new crypto tax law to be introduced in 2023 for businesses.

Earlier, Watanabe Sota, CEO of infrastructure company Web3 Stake Technologies Pte, said that to prevent entrepreneurs from leaving the country, Japan should minimize corporate taxes on crypto businesses.

The Japanese government has also proposed a 20% income tax levy on cryptocurrency gains made by individual investors, with an option to carry forward losses for the next three years from the following year. . The Japanese government is currently imposing a 55% tax on digital investors.

The tax law reform takes into account the development of cryptocurrencies in Japan and does not want to complicate the operation of digital asset companies, thereby hindering the development of cryptocurrencies in Japan, as the Japanese government reconsiders the tax system. corporate taxation.

The proposal outlines whether companies that own cryptocurrency assets will be taxed on profits from sales, while the crypto derivatives market is to adopt the same tax structure.

The Japanese government has said that due to the loss of talent and high taxes, some companies have left Japan to do business in countries like Singapore or the United Arab Emirates.

For example, after infrastructure company Web3 Stake Technologies Pte moved the business to Singapore in 2020, he wants the Japanese government to revise corporate tax starting next year. He admitted that if that happened, he would send the company back to his country.

Therefore, Japan needs to formulate soft tax rules to avoid the loss of more digital asset companies

Meanwhile, Japanese lawmakers recently unveiled plans to amend the Suppression of Organized Crime and Control of Proceeds of Crime Act (1999) to give courts and law enforcement the power to confiscate cryptocurrencies linked to criminal activities.

Image source: Shutterstock

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