The ruling parties in Japan published their 2020 tax reform proposals (‘2020 tax proposals’) on December 12, 2019. Most of the provisions in these proposals are expected to be passed into law this March. A summary of the major provisions is set out below.
Multinational enterprises currently investing in Japan should review their existing structures and determine the impact of the proposed rules. Specifically, corporations should analyse the potential effects related to the modification of the earning stripping rules and dividends received.