Japan: Inbound Tax Alert

Japan: Inbound Tax Alert
2015 Japanese Tax Reform Proposal – Announced
2015 年度税制改正大綱の公表について
January 2015-News Flash
On 30 December 2014, the ruling parties of Japan released the outline of the 2015 tax reform
proposals. Below is a short list of significant proposals that may affect foreign based companies doing
business in Japan and foreign nationals working in Japan. We will provide further details regarding these
proposals in a subsequent tax alert. It should be emphasized that these tax proposals have not been
enacted yet and could change prior to becoming law.
Corporate Tax
1. Through reductions in both the National Corporate Tax rate and the Local Enterprise Tax rate, the
standard effective income tax rate in Japan (for companies with stated capital over JPY 100 million) will
decrease gradually from 34.62% to 31.33% (rates are slightly higher for companies based in Tokyo) over
the next two years starting with tax years beginning on or after 1 April 2015.
2. The amount of taxable income which may be offset with carried over tax losses will decrease gradually
from 80% to 50% over the next 3 years starting with tax years beginning on or after 1 April
2015. However, the tax loss carryover period will increase from 9 years to 10 years for tax losses
incurred in tax years beginning on or after 1 April 2017.
3. The tax rates for both the Capital factor and Value Added factor of the factor based enterprise tax
regime (which is imposed on companies with stated capital over JPY 100 million) will increase gradually
from 0.2% to 0.4% and 0.48% to 0.96%, respectively, over the next two years starting with tax years
beginning on or after 1 April 2015. A reduction of the Value Added factor tax base may be available for
certain taxpayers that raise employee wages.
4. The ownership threshold required to fully exclude dividends received from another Japanese company
will increase from 25% or more to more than 33.3%. In addition, only 20% (currently, 50%) of dividends
received from domestic shareholdings of 5% or less may be excluded from taxable income. Dividends
received from domestic shareholdings of more than 5% up to 33.3% are eligible for a 50% exclusion.
5. The special measure allowing tax credit limit increase to 30% (originally 20%) of the total corporate tax
liability available for R&D expenditures will be abolished. Instead, 30% overall credit limit for certain
cases will be introduced. Also, the one year carry over for any excess R&D tax credit will be abolished.
6. One of the requirements to take a tax credit for wage increases will be relaxed. Companies increasing
wages by 4% (currently, 5%) over a specified base period for tax years beginning on or after 1 April 2016
will be eligible for such tax credit provided other conditions are met. The increase is further reduced to
3% for Small and Medium Sized companies with stated capital of JPY 100 million or less.
7. Various tax incentives, including special depreciation and tax credits, will be provided to companies
that invest in assets and hire employees in specified regional areas of Japan.
8. Additional measures related to the revisions to taxation of permanent establishments, which were
included as part of the 2014 tax reform, will be introduced.
9. The 95% foreign dividend exemption regime will not apply to foreign dividends that are deductible in
the payer’s jurisdiction. This rule will generally be effective for tax years beginning on or after 1 April
2016. Grandfathering rules for existing shares will apply for periods beginning before 1 April 2018.
10. Among other changes to Japan’s Controlled Foreign Corporation (CFC) regime, such regime will
apply only if the effective tax rate of the CFC is less than 20% (currently, 20% or less).
Consumption Tax
1. The place of supply for cross-border digital services (e.g. provision of e-books and online advertising
services) will change from the office of the supplier to the domicile of the recipient. The supply of
cross-border digital services will be classified into business-to-business (B2B) supplies and
business-to-consumer (B2C) supplies according to their nature and service terms. A reverse-charge
mechanism will apply to B2B supplies, and recipients, instead of suppliers, will be liable to account for
output JCT on the supply. The new rules will apply for transactions occurring on or after 1 October 2015.
2. The tax increase to 10% will be postponed by 18 months to 1 April 2017, and the "economic
conditions" clause giving the government discretion to cancel the rate rise based on prevailing economic
conditions will be removed. Also, a wide-ranging discussion will be launched towards the introduction of
multiple JCT rates in 2017.
Individual Tax
1. Income tax will be levied on built-in gains on shares held by individuals who have maintained a
domicile or adobe in Japan for over 5 years in the preceding 10 years with assets worth more than
JPY100 million when these individuals exit Japan. This rule will apply for individuals leaving Japan on or
after 1 July 2015.
2. Additional documentation requirements will be imposed on individuals claiming a non-resident as a
dependent on their income tax return.
*To view archives, please visit the website below.
2015 年 1 月-速報
2014 年 12 月 30 日に 2015 年度税制改正大綱が公表されました。日本で事業展開を行う外資系企業及び日
本で働く外国人に影響度が高い項目は次のとおりです。なお、より詳細な内容は次回の Inbound tax alert にて
1. 法人税率及び事業税率が引き下げられ、それに伴い法人実効税率が現行の 34.62%(資本金 1 億円超の企
業を対象にした標準税率の場合)から、2015 年 4 月 1 日以降に開始する事業年度以後 2 事業年度に渡り段階
2. 欠損金の控除限度額につき、2015 年 4 月 1 日以降に開始する事業年度以後 3 事業年度に渡り段階的に、
繰越控除前の所得の金額の 50%相当額(現行 80%相当額)まで引き下げられる。一方、2017 年 4 月 1 日以
後に開始する事業年度において生じた欠損金については、その繰越期間が 10 年(現行 9 年)に延長される。
3. 外形標準課税の資本割及び付加価値割の税率について、2015 年 4 月 1 日以降に開始する事業年度以後
2 事業年度に渡り段階的に、資本割は 0.4%(現行 0.2%)、付加価値割は 0.96%(現行 0.48%)まで引き上げら
4. 受取配当等の益金不算入の対象となる株式等の区分及びその配当等の益金不算入割合について、全額益
金不算入できる関連法人株式等の株式等保有割合が 25%以上から 33.3%超に引き上げられるとともに、株式
等保有割合が 5%以下の株式等については、その益金不算入割合が 20%(現行 50%)とされる。なお、株式等
保有割合が 5%超 33.3%以下の株式等については、その益金不算入割合は 50%とされる。
5. 試験研究費の控除税額の上限を当期の法人税額の 30%(原則 20%)に引き上げる措置が廃止されるととも
に、新たに控除税額の上限の総枠を当期の法人税額の 30%とする一定の措置が講じられる。また、繰越税額
6. 雇用促進税制の雇用者給与等支給増加割合要件が、中小企業者等については 2016 年 4 月 1 日から開始
する適用年度について、それ以外については 2016 年 4 月 1 日から 2017 年 3 月 31 日までの間に開始する
適用年度について、それぞれ 3%以上または 4%以上(現行 5%以上)に緩和される。
7. 地域再生法の改正を前提に、地方拠点建物等を取得した場合の特別償却又は税額控除制度が創設され、
8. 国際課税原則の帰属主義への変更の円滑な実施のための措置がとられる。
9. 国際的二重非課税を防止するため、外国子会社において損金算入される配当が外国子会社配当益金不算
入制度の適用対象から除外される。当該規定は、2016 年 4 月 1 日以後に開始する事業年度において内国法
10. 外国子会社合算税制について、特定外国子会社等に該当することとされる著しく低い租税負担割合の基
準(いわゆるトリガー税率)が 20%未満(現行 20%以下)に変更される。
1. 電気通信回線を介して行われる役務の提供の内外判定基準が、役務の提供に係る事務所等の所在地から
役務の提供を受ける者が消費税の納税義務を負う。当該規定は 2015 年 10 月 1 日以後に国内において事業
2. 消費税率の 10%への引上げ時期が 18 ヶ月延期され 2017 年 4 月 1 日とされるとともに、景気情勢に応じて
増税を停止できる景気判断条項が削除される。軽減税率は 2017 年度からの導入を目指して、対象品目、区分
1. 2015 年 7 月 1 日以後に国外転出する場合、当該転出の際に有価証券等を 1 億円以上保有し、かつ転出の
日前 10 年以内に国内に住所等を 5 年超有していた居住者については、当該転出の際に当該有価証券等の譲
2. 日本国外に居住する親族について扶養控除等を受ける場合に、一定の書類の添付等義務が新たに導入さ
*過去に発行したニュースレターについては、下記の Web サイトをご覧ください。
Dbriefs Tax Webcast
International Tax
Japan's 2015 Tax Reform Proposals: For Better or for Worse?
5 March, 2:00 – 3:00 PM HKT (GMT +8)
Host: Jun Takahara
Presenters: David Bickle, Mark Brandon, and Brian Douglas
Japan's 2015 tax reform proposals continue to support the government's policies specifically intended to
enhance Japan's international competitiveness, promote direct investment into Japan, and encourage
domestic economic growth. Weak economic results following the April 2014 Japanese consumption tax
rate increase has led the government to postpone the second planned rate increase and reflects the
government's need to prioritize economic growth over reducing the public debt. We'll discuss:
The 2015 tax reform proposals and the expected impact to corporations and individuals.
Expected changes to the consumption tax rules, including an update on the rate increase,
treatment of cross-border digital services, and what the delay in the second consumption tax rate
increase means to businesses and consumers.
Tax audit trends.
BEPS and potential impact on inbound Japanese investment.
Keep abreast on direct and indirect tax matters affecting companies and individuals in Japan.
Register for this webcast
Also please visit http://www.deloitte.com/ap/dbriefs to learn more details about other forthcoming Dbriefs
on hot topics affecting businesses in Asia Pacific.
*What is Dbriefs?
Dbriefs is a live Webcast forum that provides information on highly relevant tax and business topics to
our clients. Each episode is archived, allowing those unable to attend the live program to watch the
episode at a time convenient to them.
Inbound Group
Deloitte Tohmatsu Tax Co.
[email protected]
* This report is sent to the clients of Deloitte Tohmatsu Tax Co. and our affiliated companies, alliance
audit firm and its affiliated companies etc. For details of Deloitte Tohmatsu Tax Co., our affiliated
companies, alliance audit firm and its affiliated companies and our policy to protect personal information,
please refer to http://www2.deloitte.com/jp/en/legal/privacy.
* In order to view PDF files on your computer, please click here to install a PDF reader program.
* Please click here to send us an email for inquiries regarding the web site or email newsletters.
Home| Security| Legal| Privacy
Deloitte Touche Tohmatsu (Japan Group) is the name of the group consisting of member firms in Japan
of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Deloitte
Touche Tohmatsu (Japan Group) provides services in Japan through Deloitte Touche Tohmatsu LLC,
Deloitte Tohmatsu Consulting Co., Ltd., Deloitte Tohmatsu Financial Advisory Co., Ltd., Deloitte
Tohmatsu Tax Co., and all of their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu
(Japan Group) is among the nation's leading professional services firms and each entity in Deloitte
Touche Tohmatsu (Japan Group) provides services in accordance with applicable laws and regulations.
The services include audit, tax, consulting, and financial advisory services which are delivered to many
clients including multi-national enterprises and major Japanese business entities through nearly 7,800
professionals in almost 40 cities of Japan. For more information, please visit Deloitte Touche Tohmatsu
(Japan Group)’s website at www.deloitte.com/jp/en
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients
spanning multiple industries. With a globally connected network of member firms in more than 150
countries and territories, Deloitte brings world-class capabilities and high-quality service to clients,
delivering the insights they need to address their most complex business challenges. Deloitte’s more
than 200,000 professionals are committed to becoming the standard of excellence.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by
guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member
firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not
provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL
and its member firms.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited,
its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this
communication, rendering professional advice or services. No entity in the Deloitte Network shall be
responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2015. For information, contact Deloitte Tohmatsu Tax Co.