2026 Tax reform outline – Taxation related to financial services and real estate

Japan tax newsletter 11 March 2026

On 19 December 2025, Japan’s ruling party (a coalition comprised of the Liberal Democratic Party and the Japan Innovation Party) released the 2026 Tax Reform Outline.

This newsletter provides an introduction to major reforms contained in the Outline specific to finance- and real estate-related tax rules, as well as financial institutions and insurance companies.

Please click here to access the overall 2026 Japan tax reform outline as released in the EY Japan tax newsletter published on 3 March 2026.

Please note that the contents of this newsletter may be revised in response to future Diet deliberations concerning the reform bill.

Contents

1. Financial services and securities taxation

(1) Expansion of NISA accumulative investment framework
(2) Separate taxation for crypto assets

2. Corporate taxation

(1) Special provisions for taxation on the Banks’ Shareholding Purchase Corporation

3. International taxation

(1) Special provisions for taxation on foreign partners (special provisions pertaining to permanent establishments (PEs))
(2) Revision of Japanese Controlled Foreign Company (“JCFC”) rules

4. Real estate taxation

(1) Extension of the reduced registration and license tax measure for land ownership transfers
(2) Special provisions for taxation on the replacement of specified assets by purchase
(3) Revision of special tax provisions applicable to investment corporations
(4) Revision of taxation rules on services related to the sale and purchase of real estate located in Japan by non-residents
(5) Revision of the exemption threshold for fixed asset tax and real estate acquisition tax
(6) Extension of the measures suspending additional taxation on capital gains from land transfers

5. Consumption taxation

(1) Revision of the taxation rules pertaining to crypto assets

6. Other

(1) Extension of the tax exemption measure relating to cross-border bond repurchase agreements
(2) Revision of measures for the optimization of the tax burden of high-net-worth individuals
(3) Abolition of the tax exemption measure for lump-sum gifts of educational funds
(4) Introduction of a settlement system regarding the prefectural inhabitant tax interest levy
(5) Extension of the exemption from stamp duties for loan agreements pertaining to special loans provided to the victims, etc. of the Great East Japan Earthquake
(6) Pension taxation (matter for consideration)
(7) Unification of financial income taxation on derivative transactions (matter for consideration)