Japan Consumption Tax cut for COVID-19
- Mar 12, 2021 | Richard Asquith
12 March - Japan has moved the deadline on individuals' Consumption Tax return deadline from 31 March to 15 April 2021
12 Dec - Japan's Parliament is considering a reduction in the reduced Consumption Tax rate from 8% to 5% until the end of 2022. A return to 8% would then be phased back over two years.
21 July - Consumption Tax payments since 1 February may be delayed until 1 February 2021
16 April update - businesses which have suffered a larger than 50% drop in revenues since 1 February 2020 as a result of the coronavirus crisis may apply for exempt Consumption Tax status.
10 April update - as part of wide-ranging tax reliefs businesses are to be offered Consumption Tax payment delays without penalties or interest. Businesses must show at least 20% decline in revenues since 1 February to qualify for a 1-year postponement of Consumption Tax, corporation and income taxes.
23 March - Japan is not going ahead with a halving of the main Consumption Tax rate to 5% to help businesses struggling with the Covid-19 pandemic. Instead, it is opting for filing and payment delays.
Japan has already delayed filing deadlines and payments for individuals by two months until May. Japanese Consumption Tax was raised from 8% to 10% in October 2019 to help fund the growing social costs of and aging population.
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