2026 Tax Reform Series – Overview

Japan's 2026 Tax Reform Package includes several important changes for individuals and businesses.

Over the coming weeks, we will explain the key topics in simple English for foreign business owners and residents in Japan.

Some of the main topics include:

Individual Income Tax

• Higher income thresholds ("income wall")

• Proposed separate taxation for crypto assets

• Changes to the Blue Return Special Deduction

Corporate Tax

• Documentation requirements for related-party transactions

(We covered this topic in our recent three-part series.)

Consumption Tax

• Changes to the transitional input tax credit rules

• Changes to the special 20% tax payment rule for small invoice issuers

(These topics were also covered in earlier newsletters.)

Why these matters

Japanese tax rules can be complex, even for Japanese taxpayers.

Our goal is to explain the most practical changes in simple English and help foreign business owners understand how these reforms may affect them.

Coming next

Next week, we will begin with:

Higher Income Thresholds ("Income Wall") and What They Mean for Taxpayers in Japan.