The ruling coalition (the Liberal Democratic Party and New Komeito) on 14 December 2017 agreed on an outline of tax reform proposals for 2018.
Details of the tax reform provisions are expected to be subsequently unveiled in bills and succeeding tax law amendments, cabinet orders, and ministerial ordinances, with the final version of tax reform depending on the outcome of discussions in the Diet.
Among the corporate tax measures included in the tax reform outline are measures concerning:
In the area of international taxation, there are provisions concerning permanent establishments (generally implementing recommendations of the OECD’s base erosion and profit shifting (BEPS) project) and additional amendments to the anti-tax haven (CFC) regime.
Other proposals would affect real estate holding companies, would provide an exemption from interest on margins for over-the-counter derivatives, and would affect individual income tax measures.
Read a December 2017 report [PDF 329 KB] prepared by the KPMG member firm in Japan
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