Share with your friends

Japan: Outline of tax reform proposals; measures concerning corporate and individual taxpayers

Japan: Outline of tax reform proposals

The ruling coalition in December 2019 agreed to an outline of tax reform proposals relating to corporate, international tax, consumption tax, and the taxation of individuals. Details of the measures are expected when the actual bills are introduced.


Related content

Included in the outline of the tax reform proposals are corporate tax measures including:

  • Amendments to the Japanese group relief system, to replace the consolidated tax return filing system and special measures for promoting open innovation
  • Restrictions on eligible companies for special tax measures tax credits for acceleration of wage increases and capital investment
  • Measures concerning the treatment of entertainment expenses
  • Special measure for promoting investment in in 5G technology
  • Business tax system for companies conducting the supply of electricity

Also included in the outlined proposals are the following measures relating to international taxation:

  • New tax rules to prevent tax avoidance from tax losses created from the transfer of shares in a subsidiary following dividends received from a subsidiary
  • Controlled foreign company (CFC) regime rule changes
  • Foreign tax credit amendments
  • Earnings stripping rules

Read a December 2019 report [PDF 405 KB] (22 pages) 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 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal