According to the report by the Japanese media “CoinPost”, after the Japanese Cabinet approved the revision of the digital asset tax system, Japanese companies will no longer need to pay taxes on the “unrealized gains” of the cryptocurrencies they hold starting from April next year.
The Japanese government announced the new tax reform outline after last Friday’s (22nd) Cabinet meeting, and the bill will be submitted to the Diet session in January next year for approval by both houses of parliament. The new changes are scheduled to take effect on April 1, 2024.
Prior to this, Japanese companies were required to declare the amount of cryptocurrencies held from third parties based on the difference between market value and book value, regardless of whether the company sold the cryptocurrencies. However, now, companies will only need to pay taxes on the profits obtained from selling cryptocurrencies, similar to the rules that individual investors must comply with under Japanese tax law.