Horizons April - JapanGES Newsflash Japan 2010 Tax Reform |
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The proposed tax reform unveiled by the Japanese Tax Commission included a number of proposals which, if implemented, would affect individual taxpayers in Japan.
Key findings
The proposed tax reform unveiled by the Japanese Tax Commission included a number of proposals which, if implemented, would affect individual taxpayers in Japan.
In light of the introduction of a ‘child allowance’ and free tuition for high school pupils, the deduction taken against a taxpayer’s income for dependants will be abolished, impacting employers of tax equalized assignees who do not benefit from the free tuition.
The tax reform includes a proposal that matching contributions made by employees to a defined contribution plan will be deductible in full. However, this will not change the tax treatment of employee contributions to foreign pension plans which will remain non-deductible for Japan tax purposes.
