[TOKYO (Reuters)]- An overview of the 2023 tax reform outline has been revealed. The Kishida administration will raise the annual investment limit to 3.6 million yen and make the tax exemption period indefinite while expanding NISA, which is one of the pillars of the “asset income doubling plan.” Based on an international agreement to set the minimum tax rate for multinational companies at 15%, the new system will be introduced from fiscal 2024, and the Liberal Democratic Party and New Komeito will formally decide on the 16th.
Reuters obtained a summary. The installment type “Tsumitate NISA” will be expanded to 1.2 million yen, which is three times the current annual investment limit. The general type will be doubled to 2.4 million yen and will be exempt from tax for an indefinite period. The lifetime taxable amount will be raised to 18 million yen.
On the other hand, in order to correct the “100 million yen wall,” where annual income exceeds 100 million yen and the tax burden falls, the law will clearly state that the very rich earn more than 3 billion yen in taxation.
In the 2011 fiscal reform, legislation will also be enacted in accordance with the “global minimum taxation system” agreed by member countries of the Organization for Economic Co-operation and Development (OECD).
Companies with sales of 750 million euros or more in two or more of the four target fiscal years immediately preceding the target fiscal year are defined as “specified multinational corporate groups”, and the corporate tax burden is not sufficient. If so, they will be taxed in their home country.
In terms of automobiles, the eco-car tax reduction for weight tax will be extended until the end of 2023. Furthermore, the government plans to raise fuel efficiency standards in stages from 2024 onwards, with the aim of ensure that 100% of new car sales are electrified by 2035.
