The tax commission of the ruling coalition (the Liberal Democratic Party and New Komeito) on 10 December 2015 reached an agreement for a draft outline of tax reform proposals for 2016.
Among the items in the draft outline agreement are proposals for reduced effective corporate tax rates, and revisions to the tax loss carryforward rules, depreciation methods, anti-tax haven (CFC) rules, the scope of tax-qualified contributions-in-kind, and other business tax items.
With respect to individual taxation, the draft outline reflects measures concerning an exit tax and reporting requirements for foreign company stock options.
No agreement was reached concerning reduced consumption tax rates.
The items in the draft outline of the tax reform proposal could differ and be modified in the official release of the tax reform proposal.
Read a December 2015 report [PDF 298 KB] prepared by the KPMG member firm in Japan: Draft Outline of the 2016 Tax Reform Proposals
The government ruling coalition (the Liberal Democratic Party and New Komeito) on 16 December 2015 agreed to an outline of tax reform proposals for 2016, basically adopting measures that were proposed by a tax commission but with certain modifications.
Read a December 2015 report [PDF 298 KB] prepared by the KPMG member firm in Japan: Outline of the 2016 Tax Reform Proposals
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