The Tax Commission of Japan has submitted 2013 tax reform proposal on January 29, 2013 upon approval by the Cabinet. The suggested reform will be submitted to the Diet during February 2013 for consideration.
The proposed main changes are summarized below:
- Introduction of a tax credit for increased salaries paid to employees;
- An increase in the maximum individual income tax rate;
- Special measures for small and medium-sized companies operating certain businesses;
- An increase in the maximum creditable amount for R&D expenditure; and
- Special measures for international taxation including CFC rule changes and thin capitalization measures.
