Japan's ruling party agrees to relax corporate tax rules on virtual currencies, exempting companies from paying taxes on paper gains from cryptocurrency holdings

Japan’s ruling party has agreed to relax corporate tax rules for virtual currencies, Bloomberg reported. The tax committee of the Liberal Democratic Party on Thursday approved a proposal to exempt companies from paying taxes on the paper gains they hold on cryptocurrencies after their issuance, a party politician said. Profits from holding cryptocurrencies, including unrealized gains, are currently subject to corporate tax of around 30% in Japan. Prime Minister Fumio Kishida's government will finalize annual tax policy guidelines by the end of the year, based on party decisions. The government usually introduces legislation to parliament in January to rewrite the tax code for the new fiscal year starting April 1. Foresight News previously reported that Japan’s financial regulator proposed in August to relax corporate tax rules on encrypted assets and impose more relaxed taxes on individual stock investors to support Prime Minister Fumio Kishida’s efforts to revive the economy.