TL;DR The government and ruling parties have begun making adjustments to expand the scope of the system that imposes additional tax burdens on the super-rich in the fiscal 2026 tax reform. The target income for additional taxation will be lowered from the current 3 billion yen per year. The aim is to correct the "100 million yen barrier," which reduces the income tax burden rate for annual incomes over 100 million yen.
According to the Ministry of Finance, the tax burden is 25.9% on average for those with an annual income of 50 million to 100 million yen, but drops to 20.1% for those with an annual income of 1 billion to 2 billion yen. Because the tax burden decreases around the 100 million yen mark, the 100 million yen barrier has been seen as a problem.
by MagazineKey4532