Japan Parliament Passes Income Tax Reform Bill

The Japanese Parliament March 27 passed a 2020 income tax reform bill. The bill includes measures to: 1) allow a 25 percent deduction for qualified investments; 2) introduce a 15 percent tax credit or a 30 percent special depreciation for fixed capital investments in developing the 5G network; 3) introduce a group tax relief system to replace the consolidated tax system; 4) extend for 5 years the tax exemption for dividend income and capital gains on share capital; 5) provide tax incentives for R&D projects; and 6) extend the consumption tax filing deadline. The law would enter into force and ...