Japan’s 2026 Tax Reform: A recap of recently enacted changes

Japan tax Alert 20 April 2026

Passage of Japan’s 2026 tax reform proposals was delayed by the calling of a general election and dissolution of the House of Representatives, which postponed usual budget deliberations. However, the relevant tax reform bills were successfully enacted by the Japanese Diet on 31 March 2026.

The new legislation is intended to strengthen the economy while tackling the challenges of high inflation and addressing broader economic and geopolitical issues. The Takaichi administration is prioritizing corporate investment, technological innovation and economic equity, with the intention of transforming Japan into a high-tech, investment-driven economy.

Please find below an overview of EY 2026 Tax Reform newsletters for multinational companies doing business in Japan. Additionally, to obtain deeper insights into how these tax reforms may impact your business, we encourage you to watch a replay of our webcast offering a comprehensive explanation of the tax reform.

2026 Tax Reform newsletters offering tailored coverage for different types of businesses and Investors.

Highlights for Inbound groups

This newsletter focuses on the implications of the tax reform for overseas headquartered multinational companies and foreign individuals doing business in Japan. It covers the following topics: economic revitalization through investment and innovation tax incentives; significant changes to Japanese consumption tax rules; support for households amid a rise in the cost of living; and global tax compliance and digitalization of administration.


General overview

This newsletter offers broad overview of the 2026 Tax Reform measures, covering key areas likely to be of more direct interest to Japan-headquartered groups.


Highlights for the Finance and Real Estate sectors

Targeting financial institutions, insurance companies and real estate groups, this newsletter focuses on the specific changes affecting finance and real estate tax rules.

To understand how the tax and legal implications of these changes could impact your business, connect with the EY Japan Inbound Services team.

Contact

Ernst & Young Tax Co.
Karl Gruendel Partner, International Tax and Transaction Services