2018 Tax Reform Proposals - Announced Bookmark has been added
2018 Tax Reform Proposals - Announced
Japan:Inbound Tax Alert December 2017, No.26
On 14 December 2017, proposals for the 2018 tax reform were announced by the Liberal Democratic Party and the New Komeito Party. (Japan:Inbound Tax Alert December 2017, No.26)
Under this tax reform, among other changes, tax credits and incentives will be expanded for companies which increase wages and capital investment, while a measure to disallow certain incentives for companies which do not increase wages or capital investment will be implemented. Also, the definition of a permanent establishment (“PE”) will be expanded to align Japanese tax law with the definition under the OECD’s Base Erosion and Profit Shifting project. Also, significant revisions will be made to the individual income taxation.
Please see below for a list of some key items that may affect foreign companies doing business and individuals residing in Japan. It should be emphasized that these proposals have not been enacted and could change prior to becoming law.