Japan MOF Announces Cabinet Approval of 2026 Tax Reform Outline

The Japanese Ministry of Finance Dec. 26, 2025, announced that the Cabinet approved the 2026 tax reform outline. The announcement includes: 1) an increase to 1.78 million Japanese yen (US$11,374) in the minimum taxable income, along with increases in the individual basic deduction and the minimum guaranteed employment income deduction; 2) an expansion of housing loan deductions for energy-efficient homes and the relaxation of floor area requirements, and a five-year extension of the application period; 3) an increase to 380,000 yen (US$2,428) in the single parent deduction, and to 330,000 yen (US$2,108) in the individual inhabitant tax deduction; 4) corporate ...