Japan targets top earners with proposal for minimum income tax
TOKYO, Dec 13 (Nikkei) -
Japanese policymakers will move forward with a proposal for a minimum income tax rate targeting high earners making more than 3 billion yen ($22 million) a year, Nikkei has learned.
The new minimum tax would be set at 22.5% of income after the first 330 million yen. If this tax amount exceeds what would be paid under the standard tax, the difference would be collected.
The proposal aims to correct a typically sharp decline in people's tax burden once their income exceeds 100 million yen. Critics have argued that the current tax structure is unfair to those with lower incomes.
The ruling coalition will include the new minimum tax in the proposed tax code changes for the next fiscal year, which are expected to be finalized as soon as this week. The new tax could go into effect in 2025 following a grace period. ...continue reading
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