Japan Mulling Limiting Consumption Tax Burden on Small Biz
Newsfrom JapanPolitics Lifestyle
Tokyo, Nov. 22 (Jiji Press)--Japan began considering on Tuesday limiting the tax burden on small businesses that will be newly obliged to pay consumption tax following the introduction of an invoice system next October.
The government and the ruling parties are examining the idea of limiting the burden on freelancers and other small businesses currently exempted from the consumption tax to 20 pct of the tax amount received through their sales transactions.
The preferential treatment, likely to be a three-year limited-time measure, would be included in the Liberal Democratic Party-led ruling camp's tax system reform proposal for fiscal 2023.
Invoices are bills issued to buyers in transactions between businesses, listing information including the consumption tax amount.
Companies pay consumption tax to the government after deducting the amount of the tax indicated on qualified invoices obtained during procurement from the tax received from customers.
[Copyright The Jiji Press, Ltd.]