Financial services tax alert | 04 April 2019
2019 tax reform Taxation related to financial services
On 14 December 2018, the Liberal Democratic Party and Komeito released the 2019 tax reform outline.
Reflected in the tax reform outline are revisions to tax policy made in consideration of responses to a variety of challenges including the structural issues stemming from declining birthrates and the aging of the population, ensuring economic revitalization and an end to deflation, realizing continuous economic growth, the implementation of international tax rules and systems for the exchange of information between tax authorities, and creation of tax administration systems in keeping with a world in which economic transactions are becoming increasingly diverse and international.
This alert provides an introduction to the major reforms contained in the FY2019 tax reform outline that are peculiar to the financial service industry, particularly financial institutions and insurance companies, and focuses primarily on domestic (e.g. corporate taxation and financial and securities transaction taxation) and international taxation in relation to the financial service industry.
Please note that the contents of this newsletter may be revised in response to future Diet deliberations concerning the reform bill.
* Please see the following PDF for the full contents.