In support of the Japanese Prime Minister At Fumio Kishida initiatives aimed at reviving the economy, the country’s financial regulator has advocated easing corporate tax regulations for crypto assets as well as reducing levies for individual stock investors, Bloomberg reported on Wednesday.
What happened: The proposal would prevent companies from paying taxes on paper gains made on cryptocurrencies they hold after issuing them. A scheme that offers tax benefits to retail investors has also been proposed to be strengthened by the Financial Services Agency (FSA).
The FSA wants to increase investment limits and make the Nippon Individual Savings Account (NISA) program permanent to expand the tax incentive program for retail investors. A NISA account is an account that offers tax-free incentives to help Japanese citizens save money. It is based on the UK Individual Savings Account.
A portion of an individual’s dividends and investment income may be exempt from capital gains tax over time under NISA.
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Crypto lobby groups have been pushing for changes, with Japan’s current 30% crypto tax on companies in the country forcing companies to relocate to Singapore and other places.
Why is it important: Kishida promised to double household wealth and help expand the country’s Web3 businesses. According to Finbold, Shinsei Bank, Japan’s largest bank, has launched a new program that rewards customers with coupons for crypto exchanges when they register accounts with the institution.
According to triple-a.io, only 2.3% of Japanese people owned cryptocurrency in 2021, while 20% of the Vietnamese population participated in the fledgling industry. Bank of Japan figures show households in the country are keeping about half of their 2 quadrillion yen ($14.5 trillion) in cash and deposits.
After reviewing suggestions from government agencies, the tax panel of Japan’s ruling Liberal Democratic Party makes judgments towards the end of the year.
Photo: Nykonchuk Oleksii via Shutterstock