Cryptocurrency issuers in Japan are now exempt from paying a 30% corporate tax on unrealized gains on tokens under a June 20 revision to the law by the National Tax Agency.
The tax change comes as Japanese authorities push initiatives to promote its blockchain and crypto sector.
Prime Minister Fumio Kishida supports digital finance and blockchain adoption in Japan to reinvigorate the economy in what he has more broadly called “new capitalism.”
However, cryptocurrency investors are still subject to a maximum 55% income tax on crypto-related earnings over 200,000 Japanese yen (US$1,400) which is classified as “miscellaneous income.”
