Japan: Government plans to include loss carryforward relief
In order to offset the negative impact of the COVID-19 pandemic, the government is planning to include loss carryforward relief. Previously, the government introduced loss carryback relief for companies with common capital of up to JPY1 billion
See MoreOECD: Revenue Statistics in Asian and Pacific Economies 2020
On 23 July 2020 the OECD published Revenue Statistics in Asian and Pacific Economies 2020. The publication presents important statistics tracking progress on domestic resource mobilisation to support tax policy and reform. This can assist countries
See MoreCOVID-19: Japan introduces special grace period for tax payments
On 29 July 2020, the National Tax Agency published the updated tax relief measures for taxpayers who face difficulty paying their national tax due to the influence of the novel coronavirus disease (COVID-19). Under this, a special grace period of
See MoreJapan announces emergency economic measures in response to COVID-19 pandemic
On 7 April 2020, the National Tax Agency of Japan announced tax relief measures in response to the coronavirus (COVID-19) pandemic. For almost all national tax liabilities of legal or individual taxpayers for which payment due dates fall
See MoreDTA between Ecuador and Japan enters into force
On 28 December 2019, the Double Taxation Agreement (DTA) between Ecuador and Japan was entered into force and applies from 1 January 2020. The DTA contains Dividends rate 5%, Interest rate 10%, and Royalties rate
See MoreJapan: Government announces tax reform plans for 2020
On 12 December 2019, the Japanese government announced tax reform plans for 2020 providing new tax incentives to promote investment. The tax reform includes incentives to invest in 5G wireless technology, including a 15% tax deduction for
See MoreDTA between Croatia and Japan enters into force
On 5 September 2019, the Double Taxation Agreement (DTA) between Croatia and Japan (2018) will enter into force. The treaty generally applies from 5 September 2019 for the provisions of article 25 (Exchange of Information) and article 26
See MoreUS: Protocol to income tax treaty with Japan enters into force
On 30 August 2019, the U.S. treasury department announced that protocol amending the convention between the government of the United States of America and the government of Japan for the avoidance of double taxation and the prevention of fiscal
See MoreJapan: Parliament enacts tax reform plans for 2019
On 27 March 2019, Japan's parliament approved the legislation for the government's tax reform proposals for 2019. Some of the main measures are following: Tax incentive: As from 1 April 2019, the tax credit rates will be revised to enhance
See MoreEU: Free trade agreement with Japan enters into force
The EU-Japan free trade agreement has been ratified by both parties and enters into force on 1 February 2019. Under the agreement certain goods originating in Japan for import into the EU or originating in the EU for export to Japan may be eligible
See MoreJapan: MLI enters into force
On 1 January 2019, the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent BEPS (‘Multilateral Instrument’ or ‘MLI’) entered into force in respect of Japan. The MLI was signed by Japan on 7 June 2017. As of 1 October
See MoreJapan proposes tax reform plans for 2019
On 14 December 2018, Japan's ruling coalition party has approved a package of tax reform proposals for 2019. The proposal includes amendments to Japan’s controlled foreign company (CFC), interest expense limitation, and general transfer pricing
See MoreJapan: Tax authorities publishes the synthesized text with Israel, New Zealand, Poland, Slovakia, Sweden and the UK
Recently, the Japanese tax authorities published the synthesized text of the Japanese tax treaties with Israel, New Zealand, Poland, Slovakia, Sweden and the United Kingdom (UK) as modified by the MLI. The synthesized text reflects the agreement
See MoreIMF report considers the fiscal position of Japan
On 4 October 2018 the IMF released a report following the conclusion of talks with Japan under Article IV of the IMF’s articles of agreement. The IMF notes that Japan’s economy is growing above its potential but there are more downside risks
See MoreJapan: Diet passes Bill on the Multilateral Instrument (MLI)
On May 18, 2018, the Japanese legislature passed the Bill on the Multilateral Instrument (MLI). This means that Japan has completed the national process of ratifying the MLI. The next step is for Japan to deposit its instrument of ratification,
See MoreJapan: Parliament legislates tax reform plan for 2018
On 28 March 2018, The Diet (Japan’s parliament), enacted the tax reform plan for 2018. The tax law enforcement orders, which are regulations provided by the Government to supplement tax law, were also published in the Official Gazette on 31 March
See MoreJapan: Cabinet approves tax reform plans for 2018
Japan's Cabinet has approved a tax reform plan for the next fiscal year and includes a move to cut the corporate tax rate to 25% for companies that raise their employees' wages by 3%. For companies investing in improving their productivity or
See MoreJapan: DTA with Iceland signed
On 15 January 2018, the Japanese Ministry of Finance issued a press release announcing that the Government of Japan and the Government of the Republic of Iceland signed the Convention between Japan and Iceland for the Elimination of Double Taxation
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