Based on the impact of the new coronavirus, the Liberal Democratic Party and the Komeito Party have officially announced the tax reform outline for the next fiscal year, which includes measures to prevent the burden of property tax on all lands from increasing for the next fiscal year only. I decided to.
On the 10th, the Liberal Democratic Party and the Komeito Party met with the chairman of the tax system investigation and the chairman of the political investigation, and officially decided the tax reform outline for the next fiscal year.
The outline states that the property tax will not increase the tax burden on all land, including commercial and residential areas, only next year, based on the impact of the new coronavirus.
Specifically, if the taxable amount exceeds this year due to the rise in land prices, the tax amount will remain unchanged next year, and the land whose taxable amount will decrease due to the fall in land prices will be reduced as it is.
In addition, the "mortgage tax reduction" will increase the floor area of the target property from 50 square meters or more to 40 square meters or more, while the new target property will have stricter income restrictions.
The deduction amount will be reviewed from the next fiscal year and will be 1% of the loan balance at the end of the year or the lesser total interest paid in that year.
Furthermore, in order to realize a carbon-free society and promote digitalization, which the Suga administration advocates, it also includes preferential treatment such as deducting the corporate tax amount of companies that have made related capital investment.
The government and the ruling party will submit a tax-related bill that includes the contents of the outline to the ordinary session of the Diet next year to enact it.