- The taxation of cryptocurrencies is a hot topic in Japan, with changes to corporate tax laws expected in 2023.
- While the changes are seen as positive for startups, individual investors and other stakeholders are still facing high tax burdens.
- A session at the WebX Conference, organized by CoinOtag, discussed whether Japan’s cryptocurrency tax system will really change.
The tax treatment of cryptocurrencies is under scrutiny in Japan as the market expands. The government is considering changes to corporate tax laws in 2023, which is seen as a positive step for startups. However, individual investors and other stakeholders are still facing high tax burdens. This was the focus of a session at the WebX Conference, organized by CoinOtag.
The Current State of Cryptocurrency Taxation in Japan
As the cryptocurrency market continues to grow, the question of how to tax this new asset class has become a central theme for governments around the world. In Japan, there has been a move to review the corporate tax system (end-of-term taxation) for cryptocurrencies in 2023. While this tax reform is positive for startups challenging Web3 projects, many stakeholders, including individual investors, are still facing a heavy tax burden.
Discussion at the WebX Conference
At the WebX Conference, hosted by CoinOtag, a session titled “Will Japan’s Cryptocurrency Tax System Really Change?” was held. The panelists included representatives from Coincheck and pafin, who operate a profit and loss calculation service for cryptocurrencies. They discussed the challenges of individual and corporate tax systems in the context of the “crypto” and “web3” industries.
The Key Role of Social Momentum
The panelists, who serve as vice-chair and chair of the Tax System Study Committee of the Japan Cryptocurrency Business Association (JCBA), submit annual requests to the government. They discussed the recent amendment that excludes self-issued tokens held by corporations from end-of-term taxation, and the ongoing efforts to exempt other tokens from corporate tax. They also highlighted the need for a broad “social momentum” to push for these changes.
Conclusion
While the tax treatment of cryptocurrencies is a complex issue, the discussion at the WebX Conference highlighted the need for ongoing dialogue and reform. The panelists emphasized the need for a broad social momentum to push for changes, and the potential for new initiatives, such as Initial Exchange Offerings (IEOs), to drive market expansion. However, they also noted that achieving these goals will not happen overnight.
