Japan: Outline of 2023 tax reform proposals

Tax proposals in the 2023 tax reform

Tax proposals in the 2023 tax reform

The ruling governing coalition on 16 December 2022 agreed to an outline of tax reform proposals for 2023.

The outline is only indicative of the agreement, and the details of some contemplated changes are not certain. In addition, the final tax reform could differ from the outline depending on the outcome of the legislative process.

The tax proposals in the tax reform outline include:

  • Corporate tax
    • Tax credits for research and development (R&D) costs
    • Special measures for promoting open innovation
    • Special measures for promoting investment in digital transformation
    • Rules for spin-off transactions
  • International tax
    • Global anti-base erosion (GloBE) income inclusion rule
    • Controlled foreign company (CFC) regime
  • Fair tax burden on extremely high-level income
  • Tax administration
    • Electronic preservation system for account books, etc.
    • Reporting requirement for assets / liabilities and overseas assets
  • Tax measures to secure financial resources for strengthening defense capability
    • Corporation tax
    • Income tax
    • Tobacco tax

Read a December 2022 report [PDF 460 KB] prepared by the KPMG member firm in Japan


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