Japan: Tax reform 2016; passage of the bills

Tax reform 2016 in Japan

The 2016 tax reform bills were passed by the National Diet on 29 March 2016.

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Among the 2016 tax reform measures are the following items:

  • A reduction in the effective rate of corporate tax for certain corporations
  • Changes to the limits on deductible tax losses
  • Amendments to the depreciation methods
  • Changes to the rules for deductible directors’ compensation
  • The introduction of a corporate version of “hometown taxes”
  • Changes to the transfer pricing documentation rules
  • Amendments to the anti-tax haven (CFC) rules
  • Introduction of a reduced consumption tax rate for certain transactions
  • Introduction of an invoicing system for the consumption tax

 

Read a March 2016 report [PDF 297 KB] prepared by the KPMG member firm in Japan: 2016 Tax Reform – Passage of the Bills

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