The 2025 Tax Reform Law and Regulations have taken effect, introducing as of 1 April 2025 changes to corporate and international taxation in Japan.A new 4% special defense surtax will be imposed on corporate income tax for fiscal years starting on or after 1 April 2026, increasing effective tax rates.Tax rules for small and medium-sized enterprises has been revised and extended for two years.Internationally, Japan will align with global minimum tax rules, implementing the Undertaxed Profits Rule and Qualified Domestic Minimum Top-up Tax starting from 1 April 2026, impacting multinational enterprises operating in Japan. On 31 March 2025, Japan enacted the...