Tax News

The 2026 tax reform bill includes a reduced corporate tax rate for small and medium enterprises investing in approved digital transformation initiatives. Qualifying businesses can receive up to a 5% tax rate reduction on income related to digital investments, effective from April 2026.

The NTA has expanded eligibility for simplified consumption tax filing, raising the revenue threshold from ¥50 million to ¥80 million for FY2026. This allows more small businesses to use deemed purchase ratios instead of tracking actual input tax credits, reducing accounting burden significantly.