On November 5, the Liberal Democratic Party and New Komeito held a tax investigation committee to assess requests for tax reform submitted by various ministries and agencies. According to the Nikkei Shimbun, the taxation of crypto assets (virtual currency) on companies will be reviewed, and adjustments will be made to remove crypto assets that are continuously held for purposes other than short-term trading from being subject to mark-to-market taxation at the end of the fiscal year.
In the 2023 review of the end-of-year mark-to-market valuation tax, companies that hold assets issued by themselves will no longer be subject to the end-of-year mark-to-market valuation tax. However, if you own crypto assets issued by other companies, you will be subject to tax. For example, if a company or VC invests in a promising Web3 project and receives crypto assets as consideration, it will be subject to period-end market valuation tax. It had become. This was pointed out to be a factor hindering funding for the Web3 project or investment in Web3.
The Liberal Democratic Party web3PT’s “web3 White Paper” also pointed out this point as follows.
As a result, domestic investors investing in web3 businesses will be placed in a significantly disadvantageous competitive environment compared to foreign investors who rely on book value valuation, and Japanese investors, including those investing through funds, will This could hinder the development of the web3 ecosystem in Japan as token investment from other countries will not progress.
If in addition to crypto assets issued by the company itself, crypto assets issued by other companies will also be exempted from period-end mark-to-market valuation taxation, Web3 in Japan will receive a further boost.
｜Text: CoinDesk JAPAN Editorial Department