Consumption Tax Adjustment on the Change of Use of Fixed Assets
JAPAN TAX BULLETINFY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
Contents
In the ever-evolving landscape of international taxation, the Controlled Foreign Company (CFC) regime has emerged as a critical tool for jurisdictions seeking to curb tax avoidance through the strategic allocation of profits to subsidiaries in low-tax jurisdictions. This article aims to unpack the complexities of the CFC regime, with a focus on the recent amendments in Japan, providing a comprehensive understanding for businesses and tax professionals navigating these changes.
【Correction and Apology】
April 15, 2025
We have made corrections to ensure the accuracy of the content and have updated certain points accordingly.
We sincerely apologize for any confusion or inconvenience this may have caused.
Related content
Revisions to Japanese Consumption Tax Transitional Measures under the Qualified Invoice System
JAPAN TAX BULLETINUnder Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
Key Differences Between Accounting and Tax Treatment of Revenue Recognition
JAPAN TAX BULLETINRevenue recognition is a key performance metric affecting financial figures. This article explores examples of differences between accounting and tax treatment in Japan.
Subscribe to receive our publications
If you are interested in receiving our latest insights, You can sign up to our mailing list.