Japan Tax Agency Posts FAQs on Additional Tax for Nonreporting, Underreporting

The Japanese National Tax Agency Oct. 28 posted online FAQs on 2022 tax reform measures implementing enhanced additional taxes on income and consumption taxes for nonreporting or under-reporting. The measures are aimed at improving compliance with record keeping requirements. Topics covered include: 1) the scope of income earned by individuals and entities that is subject to the measures; 2) the nonapplication of the measures to tax-exempt sales, foreign sales, and unavoidable circumstances such as disaster; 3) the 5 or 10 percent increase in additional tax for insufficient record keeping found upon audit of sales-related, self-assessed tax due after Jan. 1, ...