Japan MOF Announces Cabinet Approval of Tax Reforms Concerning Pillar 2 Global Minimum Taxation

The Japanese Ministry of Finance Jan. 23 announced Cabinet approval of tax reforms concerning OECD Pillar Two global minimum taxation. The announcement includes measures to: 1) exempt tax from fiscal years beginning on or after Jan. 1, 2026, for constituent entities of multinational enterprise (MNE) groups based in countries meeting conditions like having a corporate tax rate of least 20 percent, or domestic minimum tax rate of at least 15 percent, under laws enacted before Jan.1 2029; 2) extend, to Dec. 31, 2027, from Dec. 31, 2026, transitional exemption criteria utilizing information included in specified country-by-country (CbC) reports; 3) provide ...