Introduction of the Special Defense Corporation Tax
2025.08.04
The Act to Partially Amend the Income Tax Act, promulgated in March 2025, introduced the “Special Defense Corporation Tax” in Japan.
As a result, for fiscal years beginning on or after April 1, 2026, corporations subject to corporate income tax on their income for each fiscal year will also become liable for this new tax. Accordingly, they will be required to file a final tax return for the Special Defense Corporation Tax (filing is required even if the amount of Special Defense Corporation Tax payable is zero).
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