Prime Minister Shinzo Abe earlier this summer announced that an increase in the consumption tax rate (from 8% to 10%) would be postponed by two and one-half years, from 1 April 2017 to 1 October 2019. Consequently, it has been expected that bills to implement the consumption tax postponement would be discussed in an extraordinary session of the Japanese Diet starting in the middle of September 2016.
The Liberal Democratic Party (LDP) of Japan on 2 August 2016 released an outline of the proposals to be included in the bills. There are also provisions in the proposals with respect to postponing changes to the local taxation for companies.
Read an August 2016 report [PDF 180 KB] prepared by the KPMG member firm in Japan: LDP – Release of Outline of Tax Reform Proposals
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.