Japan Passes 2021 Tax Reform Measures

On 26 March 2021, Japan's National Diet (parliament) approved the bill for the government's tax reform proposals for 2021, which was enacted the same date. Some of the main measures of the tax reform include the following:

• Incentives for digital transformation investment are introduced, including special depreciation of 30% or a tax credit of 3% or 5% for investments in cloud-based systems, other software improvements, and certain other assets that contribute to improved productivity and dem…