Watanabe Sota, CEO of Web3 infrastructure firm Stake Technologies Pte, stated that Japan should reduce corporate taxes on crypto businesses to keep entrepreneurs in the country.
Japan proposal is to implement a tax on crypto gains
The Japanese government has also proposed a 20% tax on cryptocurrency gains earned by individual investors, with the option to carry forward losses for three years beginning the following year.
The Japanese government currently charges digital investors a 55% tax.
As the Japanese government reconsiders the corporate tax system, the tax law reform takes into account the development of cryptocurrencies in Japan and does not want to make it difficult for digital asset companies to operate, thereby hindering the growth of cryptocurrencies in Japan.
The proposal specifies whether companies that own cryptocurrency assets will be taxed on sales profits, and the crypto derivatives market must follow suit.
According to the Japanese government, some companies have left Japan to do business in countries such as Singapore or the United Arab Emirates due to a loss of talent and high taxes.
For example, after Stake Technologies Pte, a Web3 infrastructure company relocated to Singapore in 2020, he wants the Japanese government to revise the corporate tax beginning next year. He admitted that he would return the company to his home country if this occurred.
As a result, Japan must develop lax tax policies in order to avoid the loss of more digital asset companies.
Meanwhile, Japanese lawmakers recently announced plans to amend the Law on Punishment of Organized Crime and Control of Proceeds of Crime (1999) to give courts and law enforcement agencies the authority to seize cryptocurrencies associated with criminal activity.