Big Japanese Businesses Beg for Crypto Tax Reforms

Japanese Corporations Urge Government to Revamp Cryptocurrency Tax Structure

Major Japanese businesses urge gov’t to reform crypto tax system

In a twist of fate that’s as surprising as a frog riding a unicycle, some of Japan’s biggest businesses have recently approached the government with an important request: please, oh please, reform the crypto tax laws! It seems like the Land of the Rising Sun is embracing Web3 and crypto with open arms, but the current tax system is about as comforting as a porcupine in a balloon factory.

According to an announcement by the Japan Association of New Economy (JANE), a lovely group that represents the likes of Microsoft Japan, Japan Post, and Rakuten, they have submitted a tax reform proposal to the authorities in Tokyo. The proposal aims to “reduce tax rates” in 2024, with the goal of spurring growth, increasing tax revenue, and keeping Web3 companies from jetting off to greener pastures. Apparently, the current tax system is scaring away these promising businesses faster than a haunted house scares away trick-or-treaters.

But fear not, my dear digital asset investors! JANE is well aware that Japan’s future in the Web3 sector is hanging in the balance like a tightrope walker without a safety net. They warned that if urgent measures aren’t taken, Japan might as well paint itself into a corner and be forever known as the country that missed the Web3 boat. And nobody wants to be caught dead onboard the S.S. Missed Opportunities, am I right?

JANE knows that the token-powered economy is the future, like jetpacks and robot butlers. So they’re asking the government to step up its game and foster these promising businesses. They want the tax process to be as smooth as a jazz musician on roller skates and the burden to be lifted from individual crypto holders’ shoulders like a heavyweight boxer relieved of his championship belt.

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Currently, crypto traders in Japan face the daunting task of paying taxes on their gains as “other income,” which could mean forking over more than half of their earnings. It’s time to ditch that archaic method and follow the lead of other nations that tax crypto under capital gains rules. Let’s make things fair and square, shall we?

JANE also wants Tokyo to simplify the tax process for crypto holders and overlook the “market value” of cryptoassets in asset declarations. And let’s not forget about the traders’ losses! JANE is urging the government to allow those losses to be carried forward and deducted from income declarations. It’s like getting a free pass to a buffet after a tough workout at the gym!

The ruling Liberal Democratic Party’s Web3 task force, as well as crypto exchange groups, have made similar recommendations in the past. It’s clear that the tide is turning, and the government can no longer ignore the cries for change.

Now, my dear readers, it’s time for us, the digital asset enthusiasts, to raise our voices and support these much-needed tax reforms. Let’s make Japan the Land of Web3 Wonders, where innovation and prosperity reign supreme. Together, we can create a future that’s as bright as a supernova and as exhilarating as a roller coaster ride. So, grab your tokens and join the revolution!

Note: The nation’s cabinet is expected to discuss tax reform in December. Stay tuned for updates and keep those fingers crossed!

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