1. Introduction
The ruling parties announced the 2024 Tax Reform Proposals on 14 December 2023. In this News, we will introduce major revised points in the 2024 Tax Reform Proposals. Please note that the contents of the reform might change in the process of discussions in the diet.
2. Major revised points
【Individual income tax / fixed-amount tax reduction 】
A fixed-amount tax reduction will be applied in the 2024 income.
The deducted amounts are as follows:
・National income tax /JPY30,000
・Local inhabitant tax / JPY10,000
Please note that this special deduction will only be applicable to individuals whose total income amount for 2024 is JPY 18.05 million or less.
【Corporation tax / entertainment expenses (eating & drinking expenses)】
The amount of eating and drinking expenses, which is excluded from the non-deductible entertainment expenses, will be amended to JPY10,000 or less (JPY5,000 under the current law) per person.
【Local tax / Size-based business tax (rules for capital reduction)】
A company which was subject to size-based business tax in the previous fiscal year will be subject to size-based business tax if the total amount of stated capital and capital surplus exceeds JPY1 billion, even if the stated capital is JPY100 million or less for the current fiscal year.
【Consumption tax / Introduction of platform taxation】
In cases where foreign suppliers provide digital services through digital platforms and the amount of the consideration for such digital services exceeds JPY5 billion, the platform operators will be liable to Japanese consumption tax on behalf of the foreign suppliers.
3. Conclusion
In this News, we mentioned major revised points in the 2024 Tax Reform Proposals.
Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us.
(Reference / in Japanese)
2024 Tax Reform Proposals
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