(Unofficial and ProvisionalTranslation)
December 24, 1997
I. Viewpoints andBackground
1. Background of the Tax Reform
(1) Viewpoint 1: Economic and SocialStructural Changes and Reforms
(2) Viewpoint 2: Current Financialand Economic Circumstances
(3) Viewpoint 3: Consistency withFiscal Structural Reform
(4) FY 1998 Tax Reform: a Responseto the Above Situation
2. Promotion of Decentralization
3. Simplification of the Tax System
II. FY 1998 TaxReform
1. Economic Structural Reformand Corporate Tax Reform
(1) The Need for Corporate Tax Reform
(2) Reducing Tax Rates
(3) Broadening the Tax Base
(4) Broadening the Tax Base and ReducingTax Rates
(5) Local Corporate Taxation
(6) Prospects for Further CorporateTax Reform
(7) Other Issues under Consideration
2. Financial System Reform andFinance-Related Tax System
(1) How Should the Tax System Respondto the Financial System Reform ?
(2) Taxation on Financial Transactions(Securities Transaction Tax and Bourse Tax) and on Capital Gainsfrom the Sale or Transfer of Shares and Securities
(3) Taxation Concerning New MeasuresIntroduced under the Financial System Reform etc.
3. Recent Situation of Land Valueand Land Transactions, and the Land Tax System
(1) Recent Situation of Land Valueand Land Transactions
(2) Real Estate Securitization etc.
(3) Consideration of the CurrentLand Tax System
4. Other Tax Amendments
(1) Extension of the Autonomy ofLocal Government Taxation
(2) Preservation of Records by ElectronicData
(3) Gasoline Tax and Light Oil DeliveryTax etc.
(4) Tobacco Tax
III. Issues underFurther Consideration
1. Taxpayer Identification NumberSystem
2. Pension Reform and PensionTaxation
3. Tax Competition