2020 Japan tax reform outline

Japan tax alert 18 December 2019

2020 Japan tax reform outline

The 2020 tax reform outline was released on 12 December 2019. In this alert, we provide an overview of the major reforms and revised provisions contained in the outline. Please note that provisions may be revised, deleted or added during Diet deliberations regarding the reform bill.
 

Corporate taxation

1. Revision of the consolidated taxation regime (transition to a group income and loss sharing regime)
   
   
2. Introduction of a tax incentive to promote open innovation
   
   
3. Establishment of a tax incentive to encourage the introduction of 5G infrastructure (5th generation mobile communication systems)
   
   
4. Revision of criteria for the application of special measures concerning taxation (R&D tax credit rules, etc.)
   
   
5. Other
    

International taxation

1. Addressing schemes which incorporate subsidiary dividends and subsidiary share transfers
   
   
2. Other
    

Individual income taxation, tax administration, and other reforms

1. Individual income taxation
   
   
2. Revision of the Electronic Books Maintenance Act
   
   
3. Extension of the consumption tax return filing deadline
   
   
4. Measure to ensure appropriate taxation in relation to foreign transactions, etc.
   
   
5. Other reforms