Japan Implementing Pillar 2 Side-by-Side Package

Japan's Ministry of Finance has published the Cabinet Decision of 23 January 2026 on the alignment of Japan's Pillar 2 global minimum tax rules with the side-by-side package announced by the OECD on 5 January 2026. According to the decision, Japan's rules will be revised to:

• Introduce an exemption so that multinational groups headquartered in designated jurisdictions with internationally recognized minimum tax systems (e.g., those with a 20%+ corporate tax rate and their own domestic minimu…