Taxation System Reform Bill FY2011 has been passed.

Taxation System Reform Bill FY2011 was divided in two by original “draft of a proposed law to revise a part of the income tax law”(January 25, 2011 cabinet decision) . One of those “Law to revise parts such as the income tax law to plan maintenance of the taxation system in response to severe economic conditions of the present time and an employment situation” (hereinafter referred to as , Revised Law) was approved in the House of Councillors plenary session on June 22, 2011 (promulgation day June 30, 2011).The revision such as expansion of the group corporation taxation system, the limitation of the interim report by the provisional settlement of accounts is carried out for the corporation tax.In addition, with the consumption tax, review of entrepreneur tax exemption limit systems and the review of purchase tax credit 95% rule (uploaded on preceding June 30) is carried out.

And, the reduction of the corporation tax rate, the revision of general provisions of the National Tax Act, the reduction of the inheritance tax basic deduction are interwoven in “a draft of a proposed law to revise parts such as the income tax law to plan construction of the taxation system corresponding to the change of the economic social structure” and are submitted to the Diet, but are not yet approved because of lack of the agreement between the ruling and opposition parties. A viewpoint that the approval in FY2011 is difficult comes up.

①FY 2011 taxation system revised item passed in the Diet(a main items)

②FY 2011 taxation system revised item not passed yet in the Diet(a main items)