Odaily Planet Daily News Japan's Financial Services Agency (FSA) has submitted a request for legislative changes to the government to advance the way of taxing local cryptocurrency companies.
The FSA document states that Japan's Ministry of Economy, Trade and Industry has signed off on the reform. The new tax regime on crypto-assets (virtual currencies) requires modifications to corporate taxes and requires the government to continue to review issues related to year-end taxation of “crypto-assets held by third parties” at market prices. Tax reforms regarding crypto assets held by third parties were also mentioned in a tax reform request submitted to the government by the Japan Blockchain Association (JBA) in July.
Under Japan’s current legal system, if a company holds crypto assets, it must pay tax on unrealized gains (the increase in the value of its tokens) at the end of each fiscal year. In other countries, companies are only required to pay tax on the cryptocurrencies they sell or exchange for fiat currency. (Cryptonews)