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.
The outline for tax reform that was proposed earlier in December 2015 includes items that would reduce the effective corporate tax rates, and would make revisions to the tax loss carryforward rules, depreciation methods, anti-tax haven (CFC) rules, the scope of tax-qualified contributions-in-kind, as well as provide for other business tax amendments.
With respect to individual taxation, the outline reflects measures concerning an exit tax and reporting requirements for foreign company stock options.
The changes made to the draft version of the tax reform proposal (changes from the original draft outline) concern new provisions related to a reduced rate of consumption tax and introduce a new invoicing system.
Read a December 2015 report [PDF 356 KB] prepared by the KPMG member firm in Japan: Outline of the 2016 Tax Reform Proposals
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