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