Japan Master Tax Guide 2020/21 (18th Edition)

Japan Master Tax Guide 2020/2021 is a handy and comprehensive reference on Japanese tax rules. It is designed to be used by businesses and individuals subject to Japanese taxes and tax professionals who deal with Japanese tax issues.

This 18th edition of the Japan Master Tax Guide (2020/2021) has been updated to reflect the legislation promulgated through 30 April 2020.

including:

・所得税法等の一部を改正する法律( 令和2年法律第8号)
Law to Partially Revise the Income Tax Law, etc, Law No 8 of 2020, 31 March 2020 (generally effective from 1 April 2020 with other effective dates for some provisions).

 ・新型コロナウイルス感染症等の影響に対応するための国税関係法律の臨時特例に関する法律(令和2年法律第25号)
Law for Extraordinary Exceptions to the National Tax Law to Address the Impact of New Coronavirus Infections, etc, Law No 25 of 2020, 30 April 2020 (effective 30 April 2020)\

Legislative items that have not been approved by the Diet are identified in the text of this edition of the Japan Master Tax Guide as proposed legislation.

key updates

• Latest updated tax rates, forms and figures
• The introduction of the group aggregation system for tax purposes. (There is quite a lot of detail here, including a useful comparison with the previous consolidated system)
• Coverage on the emergency measures in response to COVID-19, such as various extensions of deadlines, certain exemptions, relaxation of various rules, and carry back of losses.
• 2020 revision of valuation of securities, based on the ASBJ Statement No. 30 Accounting Standard for Fair Value Measurement (Important for accounting for investments)
• Changes to the taxable purchase of buildings used for residential leasing treatment
• Information on disallowed foreign taxes
• Additional information on tax credit for promoting employment
• Clarification on the time limits for corrections of taxes
• Information on new incentives available for promoting open innovation effective 1 April 2020
• The extension on due dates for declaration of property acquired by inheritance

Legislative items which have not been approved by the Diet are identified in the text of this edition of the Japan Master Tax Guide as proposed legislation.

Key features of the guide include:

• Expert commentary written in clear and concise English, with headings in Kanji character.
• Easy to use flowcharts, tables, including up-to-date withholding tax tables reflecting the latest tax law changes.
• Detailed references to the original Japanese statutes and regulations.
• English translation of commonly-used forms.

Key benefits of the guide include:

• Concise and easy-to-read, the guide gives readers a clear and current understanding of their tax liabilities and entitlements.
• Assists with the preparation of income tax returns and allows for quick location of answers to tax questions.
• Practical worked examples help illustrate how the law is applied in practice.
• Provides complete coverage of Japan’s tax requirements that helps mitigate the risk of non-compliance and unnecessary penalty exposure.