[responsive_menu_pro]

Japan: Tax Reform Bill Proposes Amendments and Implications

Spread the love

The Japanese lower house of parliament (Shugiin) accepted for consideration Bill No. 1 on February 2, proposing amendments to various tax laws. The bill encompasses several measures, including:

 

  1. Offering a flat-rate reduction of 30,000 Japanese yen per resident earning 18 million yen or less.
  2. Providing special tax deductions for specific certified housing loans.
  3. Amending the special tax credit system for research and development expenses, machinery, and building depreciation.
  4. Establishing a five-year carry-forward deduction system for small and medium-sized enterprises (SMEs).
  5. Introducing additional tax deductions for companies supporting work-life balance activities.
  6. Creating a 10-year tax credit for electric vehicles based on production and sales volume.
  7. Implementing a 30 percent income tax deduction for specific income derived from patent rights under the innovation box tax system.
  8. Introducing a consumption tax on platform operators with transaction values above 5 billion yen for digital services provided by foreign businesses.
  9. Establishing a reporting system for the automatic exchange of transaction information on digital assets for non-residents.

 

 

These amendments are scheduled to take effect on April 1.

 

 

Source: mof.go.jp

Follow us on LinkedIn to keep up with the latest VAT news

Join us!

Subscribe to our monthly newsletter
download dac7 report

Free Download - DAC7 Report

New DAC7 reporting obligations for online platforms and marketplaces came into effect! Learn all about it in our DAC7 report

You have Successfully Subscribed!