Japan’s National Tax Agency to Revise Partial Tax Rules for Virtual Currency Companies

According to Coinpost, the National Tax Agency of Japan issued a legal interpretation notice on part of the revision of corporate tax rules, which stated that if the encrypted assets (virtual currency) issued by enterprises meet the conditions, they will be excluded from the market value assessment, making cryptocurrency related companies It is easier to do business in Japan. This revision is also included in the "Ruling Party Tax Reform Outline" for fiscal year 2023. This time, the National Tax Agency has notified that it has been officially decided to exempt. Under current Japanese law, if a company holds cryptocurrencies, it will be taxed on unrealized gains at the end of the period, and due to this law, some businesses choose to do business outside of Japan. This revision will relax the rules for issuing virtual currencies. There are two main conditions for the exemption from market valuation. The first is that it must be a company-issued cryptocurrency that is held continuously from the date of issue. The second is that from the date of issuance of virtual currency, it must be subject to transfer restrictions (including the adoption of technical measures and trust property that meets specific requirements).