Japan’s cabinet meeting approved the tax reform outline for fiscal year 2024, and corporate crypto assets will not be subject to market value tax

The Japanese government approved the tax reform outline for fiscal year 2024 at the cabinet meeting on the 22nd. The amendments include changes that will apply to companies holding crypto-assets (virtual currencies) issued by third parties that will not be subject to mark-to-market tax. Until now, cryptoassets (virtual currencies) issued by third parties held by Japanese domestic companies were recorded as profit or loss at the end of the fiscal year based on the difference between the market value and the book value. The changes will only tax profits generated by the sale of cryptocurrencies by the companies involved, meaning the same tax regime that applies to retail investors will change. The bill will be submitted to Congress in January next year and needs to be approved by the House of Representatives and the Senate. (Coinpost)