Japan: Outline of tax reform proposals for 2017

Japan: Outline of tax reform proposals for 2017

Japan’s ruling coalition (the Liberal Democratic Party and New Komeito) agreed on an outline for tax reform proposals for 2017.

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Among the proposals that would affect corporate taxation are measures concerning:

  • Directors' compensation and retirement allowances
  • Timing of deductions of costs for restricted shares and stock options
  • Extension of the due date for filing final tax returns
  • Reorganizations including spin-offs and consolidation-related matters
  • Tax credits for research and development (R&D) costs
  • The promotion of investment in facilities for regional core companies
  • Tax credits for salary growth

Other proposals would amend the "repo transaction" rules that apply for international taxation.

There are measures that would affect individual taxpayers—including "spouse deduction" and inheritance and gift tax treatment of property located outside Japan as well as an amendment to the fixed asset tax for high-rise condominiums.

 

Read a December 2016 report [PDF 387 KB] prepared by the KPMG member firm in Japan

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