Japan: Details of tax relief measures (COVID-19)

Japan: Details of tax relief measures (COVID-19)

The Cabinet on 7 April 2020 announced details of emergency economic measures in response to the coronavirus (COVID-19) pandemic.


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The measures include tax relief, such as:

  • A grace period for payment of tax—for almost all national tax liabilities of corporate or individual taxpayers for which payment due dates fall between 1 February 2020 and 31 January 2021, a grace period of one year or less, provided there has been a 20% decrease in the taxpayer’s revenue for the same period in the prior year
  • Tax refund by application of tax loss carrybacks—expanded for companies with stated capital of JPY 1 billion or less (from JPY 100 million or less)
  • Tax reduction for capital investment in teleworking for small and medium-sized companies
  • Application of charitable (donation) deduction to individuals who give up a right to claim a refund of the amount they paid for admissions to a cultural, arts or sporting event that was cancelled because of COVID-19
  • Flexible treatment of the requirements for application of the special deduction available for housing loans
  • Special rules for consumption tax—when sales for a one-month (or longer) period between 1 February 2020 and 31 January 2021 are decreased significantly (50% reduction or more), the selection or cancellation of taxable company status for consumption tax purposes to be permitted
  • Stamp tax exemption for contracts involving public or private financial institutions

There are also local tax relief measures (such as a grace period for tax collection and reduction of property tax on certain property owned by small and medium-sized entities).

Read an April 2020 report [PDF 106 KB] prepared by the KPMG member firm in Japan

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