Japan's ruling coalition has approved a package of tax reform proposals for 2019. Some of the main measures are summarized as follows:
Earnings Stripping Rules
The earnings stripping rules are to be amended, which includes:
- An extension of the scope of the rules to interest payments to related parties and third parties;
- A reduction in the deductible interest payments cap from 50% of adjusted taxable income to 20% of adjusted taxable income;
- Changes in how adjusted taxable income is deter…