Major Japanese Businesses Ask Gov’t to Reform Crypto Tax System
Some of Japan’s biggest businesses have asked the nation’s government to make crypto tax reforms, as the country continues to pivot to Web3 and crypto.
Per an official Japan Association of New Economy (JANE) announcement, the group has submitted a tax reform proposal to Tokyo.
JANE has asked the government to “reduce tax rates” in 2024 to “encourage growth and increase tax revenue.”
The request refers to various forms of tax, but also makes specific mention of crypto-related taxes and Web3 growth.
The request states that the current crypto tax system is causing “promising Web3 companies” to leave the country.”
JANE also warned that if steps were not taken to ameliorate the situation, Japan could be “left behind” in the Web3 sector.
And JANE claimed that “urgent measures” were needed to foster promising businesses and “develop the token[-powered] economy.”
JANE has previously called Web3 a “new opportunity” for Japan.
Prime Minister Fumio Kishida has repeatedly talked up NFTs and Web3, calling them potential growth engines for the economy.
The organization’s members include the likes of Microsoft Japan, Japan Post, Nippon Gas, Matsui Securities, LINE Yahoo, and the Seiko Group.
The group’s Chairman is Hiroshi Mikitani, the CEO of Rakuten.
JANE’s calls to reform the tax system echoes similar statements from Japanese IT sector leaders and opposition party leaders.
The government has already shown a willingness to reform crypto tax laws for companies, most of whom are currently obliged to pay tax on “unrealized gains.”
That means that most firms with crypto holdings must pay taxes on coins that appreciate in value over the course of a fiscal year, even if they do not trade these coins for fiat.
Most other nations only tax crypto profits
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