Japan Tax Update: Strengthening of Minimum Tax Rules for High-Income Individuals Starting in 2027
JAPAN TAX BULLETINStarting in 2027, a revised minimum tax regime will apply to certain high-income individuals in Japan. While JPY165 million is used as a calculation threshold, additional tax is only triggered where the minimum tax exceeds the regular income tax liability. The reform is intended to ensure a minimum level of taxation, particularly where a significant portion of income is derived from investment or equity-based sources.
