Japan: Outline for 2022 tax reform proposals

Tax proposals in the 2022 tax reform outline

Tax proposals in the 2022 tax reform outline

The ruling governing coalition on 10 December 2021 agreed to an outline for tax reform proposals for 2022.

The outline is only indicative of the agreement, and the details of certain contemplated changes are not certain. More information will be provided when the bills to revise the tax laws are introduced.

The tax proposals in the tax reform outline include:

  • Corporate tax
    • Tax credits for acceleration of substantial salary increases
    • Limitation on eligible companies for special tax measures
    • Japanese group tax relief
  • International tax
    • Special provision for the reduction of book value of shares in subsidiaries
    • Earnings stripping rules
  • Tax administration
    • Electronic preservation system for account books, etc.
    • Reporting requirement for assets / liabilities and overseas assets

Read a December 2021 report [PDF 359 KB] prepared by the KPMG member firm in Japan

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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 3712, 1801 K Street NW, Washington, DC 20006.