The Japan Blockchain Association (JBA) has reportedly submitted a request to the Japanese government for revisions to the current tax system, which they feel hinder the growth of web3 businesses in the country.
They have proposed a flat tax rate of 20% for personal transactions and the elimination of taxes on profits from crypto transactions, as per statistics from the Japan Crypto Asset Exchange Association, which indicated that, as of April 2023, there were 6.8 million crypto accounts opened.
JBA has also suggested eliminating year-end unrealized profit taxation on third-party-issued tokens, claiming that the removal of the need for companies to sell their tokens for tax payments would provide a more accessible market for web3 businesses.
Recently, the Prime Minister of Japan, Fumio Kishida, asserted that web3 has the potential to revolutionize the current internet framework and achieve meaningful social changes — and the government appears to be committed to creating a favorable environment for these efforts.
