Japan Passes 2019 Tax Reform Measures

On 27 March 2019, Japan's National Diet (parliament) reportedly approved the legislation for the government's tax reform proposals for 2019. As previously reported, some of the main measures of the tax reform include the following:

Earnings Stripping Rules

The earnings stripping rules are amended, including:

• An extension of the scope of the rules to interest payments to both related parties and unrelated parties;
• A reduction in the deductible interest payments cap from 50% of adjusted ta…