Japan: Corporate tax items in now approved tax reform legislation

Japan: Corporate tax items in tax reform legislation

Japan’s National Diet on 27 March 2017 passed the 2017 tax reform bills that include the following amendments with respect to corporate taxation:

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  • Tax treatment of directors’ compensation and retirement allowances
  • Timing of deduction of costs for restricted shares and stock options
  • Extension of due date for filing final tax returns
  • Reorganization rules
  • Tax credits for research and development (R&D) costs
  • Introduction of special measures for companies leading regional economy
  • Tax credits for salary growth
  • Scope of small and medium-sized companies

 

The tax reform legislation also includes measures concerning an “anti-tax haven” or controlled foreign corporation (CFC) regime.

 

Concerning individual taxation, the legislation addresses:

  • Spouse deduction and special spouse deduction
  • Scope of taxable income for non-permanent residents
  • Scope of taxpayers for properties located outside Japan

 

Also, the consumption tax treatment of virtual currencies is addressed.

 

Read a March 2017 report [PDF 204 KB] prepared by the KPMG member firm in Japan

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