Cryptoassets held by third parties will no longer be subject to end-of-year mark-to-market taxation – Liberal Democratic Party announces tax reform outline | CoinDesk JAPAN

On December 14, the Liberal Democratic Party announced its tax reform outline for fiscal year 2024. This is a summary of the basic policies for tax reform from next fiscal year onward, and will be debated at next year’s regular Diet session.

The outline focuses on raising wages and promoting domestic investment, but with regard to crypto assets (virtual currency), crypto assets held by third parties must meet certain requirements to avoid taxation on end-of-year mark-to-market valuation. It was included that it would be excluded.

With the review of end-of-period market valuation taxation carried out in 2023, if you own crypto assets issued by your own company, you are no longer subject to end-of-period mark-to-market valuation taxation, but if you hold crypto assets issued by other companies, It was subject to tax.

This time, crypto assets issued by other companies will also be exempted, which will lower the hurdles for companies and VCs to invest in promising Web3 projects and receive crypto assets in return, further promoting investment in Web3 projects. That is expected.

Related organizations such as the Japan Crypto Asset Business Association (JCBA), which had submitted requests for tax reform, and industry participants have posted on social media that the changes have been reflected in the outline.

JCBA’s tax reform requests have been reflected in the outline! ! https://t.co/suLRrqexj3 pic.twitter.com/laTz5PAZAi

— Japan Crypto Asset Business Association (JCBA) (@JCBA_org) December 14, 2023

｜Text: CoinDesk JAPAN Editorial Department
｜Image: Shutterstock