Introduction On December 12, 2019, the Outline of the FY 2020 (Reiwa 2) Tax Reform was released. Included in the Outline are tax reforms that come from different perspectives. Reforms with the goal of realizing sustainable economic growth in mind include measures on open-innovation activities, measures to encourage investments and wage increases, revisions to the…
Introduction The Individual Number System, which was introduced in October 2015, began later issuing the Individual Number Cards starting January the following year. In the span of four years since then, however, no more than 15% of Japan’s population has been issued their Individual Number Cards (as of November 2019 according to the Ministry of…
Introduction It has been quite some time already since Japan increased its consumption tax rates to 10% starting October 1, 2019. Together with the increase in tax rates is the introduction of the “Reduced Consumption Tax System” and the “Point Reward Project for Cashless Payments”. With these two new schemes, consumer’s purchasing patterns can vary,…
In Japan, companies are primarily determined according to the amount of invested capital funds as to whether they can be classified as SMEs (Small and medium-sized entities). A company established in Japan can benefit from a variety of tax-related procedures in the event it becomes a small and medium-size entity. Consequently, a company incorporated in…
Restoration Tax or Surtax is an addition tax imposed on companies in order to recover from big natural disasters, help cover the costs of reconstruction. These days corporate tax rate was lowered by 35,64% and Government Tax Commission is discussing the further reduction of Japanese corporate tax. In addition to corporate tax reduction, in order…
Today we will be addressing FAQs concerning inhabitant taxes in Japan. Q : Who is liable to pay inhabitant or residence tax? A : Inhabitant (or residence) taxes are paid in Japan only if you are a resident*. Nonresidents don’t need to pay this tax. *You don’t need to pay residence taxes if you are…
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