The outline of Japan's 2024 tax reform exempts long-term capital gains from cryptocurrency for businesses

According to ChainCatcher news, as reported by Coinpost, the Japanese government approved the tax reform outline for the fiscal year 2024 at the cabinet meeting on the 22nd. The amendment includes the following changes: companies holding third-party issued crypto assets (virtual currencies) will not be subject to market value taxation.

Through this tax reform, the scope of year-end market value assessment in the corporate income tax law will change. Previously, third-party issued crypto assets (virtual currencies) held by corporations were accounted for at year-end based on the difference between market value and book value as profit or loss. However, through this reform, for long-term holdings, this market value assessment will be eliminated.

The bill will be submitted to the Diet in January next year and will require approval from both the House of Representatives and the House of Councillors.