Japan weighs ending tax on some corporate crypto holdings

Move aims to stem flow of startups choosing Singapore, Dubai over Tokyo

20231205N Crypto

Japan's taxation of cryptocurrency holdings is unusual compared to other countries. © Reuters

KO FUJIOKA and MIKI OKUYAMA, Nikkei staff writers

TOKYO -- Companies in Japan would no longer have to pay tax on unrealized cryptocurrency gains if they hold on to the digital assets under a proposal being discussed by the country's ruling coalition.

Under the proposed tax code change, cryptocurrencies held for purposes other than short-term trading would be made exempt from corporate tax based on mark-to-market valuations at the end of each fiscal year.

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