- The US Treasury and IRS issued Notices 2025-46 and 2025-49 to clarify the Corporate Alternative Minimum Tax.
- The guidance excludes unrealised crypto gains from CAMT, sparing companies like Strategy from large phantom liabilities.
- Interim rules also address corporate deals, troubled firms, and specific industries, with flexibility for compliance until final regulations are issued.
The United States Treasury Department has confirmed that unrealised cryptocurrency gains will not be taxed under the Corporate Alternative Minimum Tax (CAMT), delivering a major win for digital asset companies.
The Treasury and Internal Revenue Service (IRS) issued two interim guidance documents, Notice 2025-46 and Notice 2025-49, to provide clarity on the rules.
CAMT, which came into effect under the 2022 Inflation Reduction Act, applies a 15% minimum tax on the adjusted financial statement income (AFSI) of corporations earning over US$1 billion (AU$1.52 billion) annually. Since the tax began in 2023, companies and tax professionals have struggled to interpret how AFSI should be calculated, prompting repeated updates from regulators.
Notice 2025-49 confirms that digital asset firms are not required to include unrealised fair value gains and losses in CAMT income. This clarification ensures that companies are only taxed when they dispose of assets and realise actual profits. Without this exemption, firms with significant Bitcoin holdings, such as Strategy, which controls more than 640,000 BTC, would have faced multibillion-dollar liabilities based on year-to-date unrealised gains of US$13.5 billion (AU$20.47 billion).
Related: Tether Bolsters Bitcoin Reserves with $1B Acquisition, Nears 110K BTC Holdings
Sector-Specific Provisions
The interim rules also address a wide range of other areas. Provisions were introduced for troubled firms in bankruptcy, mergers and acquisitions, and consolidated corporate groups. Additional guidance was included for regulated utilities, shipping under the tonnage tax, and nonlife insurers, aligning CAMT with established industry rules.
Corporations now have the option to rely selectively on the proposed regulations or the interim notices, offering flexibility in compliance. Although the guidance is not final, it can be applied immediately for current tax years, with future regulations expected to incorporate much of the relief provided.
Related: Chainlink, UBS, and Swift Pilot Bridges Banks to Blockchain with Onchain Fund Transactions
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