Currently, Japanese crypto companies pay a 30% corporate tax on their holdings whether they have made a profit or not. Due to the strict tax laws in the past few years, it is reported that some local crypto businesses have chosen to move their operations elsewhere. This progress has had an impact on the country’s economic growth, and the LDP, having identified it as its first task, wants to raise that level.
The Liberal Democratic Party (LDP) of Japan talks about structural change and is working with the United States to achieve a defense and foreign policy. The term structural change refers to many subjects in the country. An example of such topics is the adoption of measures such as tax reform to stand the test of economic pressure.
Japanese Has Set Out To Loosen Strict Tax Laws
In line with its goal of promoting rapid economic growth, the tax committee of Japan’s ruling party (LDP) held a meeting on December 15. The meeting was to deliberate on tax reform. While there, they approved a plan filed in August. The plan seeks to remove taxes on the income crypto companies earn by issuing or holding tokens.
The Japanese government is looking to relax tax requirements for crypto businesses to support the growth of the technology and financial sector. Submissions to parliament of the soft crypto tax law will begin in January and take effect in the next fiscal year starting in April.
LDP lawmaker and Web3 political party member Akihisa Shiozaki spoke about recent events in an interview with Bloomberg. Shiozaki said this is a step forward in economic reform. He added that this will allow more companies to start offering services.
Japan’s Demand For Digital Currency Is Still Disappointing Despite The Crypto Crisis
The new decision of the Japanese government suggests that it wants to promote and promote the growth of the domestic crypto industry on the Web3. This also shows that the current downturn in the crypto industry, including the FTX crisis, has not affected his interest in blockchain technology.
Japanese Prime Minister Fumio Kishida emphasized the role of NFT, blockchain and Metaverse in the digital transformation of the region in a statement in October. He cited a practical example using the digitization of national identity cards.
In October, the Japan Virtual and Crypto Assets Exchange Association announced plans to relax the strict selection process for listing tokens on exchanges. Kishida made the comments in June, asking the organization to suspend its strict rules and selection process.
Some senior executives of the private sector also have the same opinion with the Prime Minister. On December 8, Sumitomo Mitsui Financial Group (SMBC) announced an ongoing project to investigate the use of soul tokens (SBT).
SBTs are part of Ethereum developer Vitalik Buterin’s proposal to use tokens that represent people’s digital identities.