Japan's Financial Regulator Officially Proposes Crypto Tax Cut

According to a recent report by Bloomberg, Japan's financial regulator has proposed reducing taxes for crypto companies and individual investors in a highly anticipated move. In addition, Japanese Prime Minister Kishida aims to double household wealth and support the country's Web3-centric businesses.

In an effort to improve the crypto tax system, Japan's Financial Services Agency has proposed easing corporate tax rules for crypto assets and implementing lighter taxes for individual equity investors to support Prime Minister Fumio Kishida's efforts to revitalize the economy. Furthermore, the FSA proposal also aims to introduce lighter taxes for individual equity investors. Under the current tax system, individuals can exclude a portion of their investment gains and dividends from capital gains tax for a certain period of time. According to the media giant, in its annual tax code change request, the regulator proposed exempting companies from paying tax on paper gains from cryptocurrencies that they hold after issuing them. Currently in Japan, profits from cryptocurrency holdings, including unrealized gains, are subject to corporate tax at a rate of around 30%, and individual crypto investors can be taxed up to 50%. The proposal asks the government to set investment limits for retail investors In favor of retail crypto investors, Japanese regulators' annual tax code change request aims to implement tax breaks. The proposal calls for the government to raise the investment limit for retail investors and for the tax break system to work with the Nippon Individual Savings Account, an account aimed at helping Japanese residents save money with tax-free benefits. As recently as last month, two of the country's top crypto lobbying organizations, the Japan Crypto Asset Business Association and the Japan Virtual and Crypto Asset Exchange Association, submitted a proposal to the Financial Services Agency that aims to lower tax regulations and create a better environment for local digital asset businesses. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!