Global Watch ()
The 2014 tax reform proposal was released by the ruling parties on December 12, 2013. The proposed tax law changes will be discussed at the Cabinet and submitted to the Diet early next year for consideration.
While focusing on measures to stimulate corporate investments, one major item proposed for individual income tax is to lower the limit on the maximum amount of automatic deductions allowed for company directors and employees starting from tax year 2016. This change, along with the increase in the top tax rate to be introduced from 2015, would further increase tax costs to high-earners working in Japan.