The Tax Reform Outline for Fiscal Year 2022 has been announced by the ruling party

On December 10, 2021, the Tax Reform Outline for Fiscal Year 2022, presented by the Liberal Democratic Party and Komeito, was announced.

One of the most notable revisions highlighted in the outline is the expansion of the tax credit rate for wage increases—up to 30% for large companies and up to 40% for small and medium-sized enterprises.

The reform also requires large companies of a certain size to declare their commitment to management practices that consider employees and other stakeholders. However, there remains uncertainty as to whether wage increases will reach all employees evenly.

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