• Noto Peninsula Earthquake

LDP Drafts Tax Exemption Bill for Noto Peninsula Earthquake Victims

Yomiuri Shimbun file photo
The Liberal Democratic Party’s headquarters building in Tokyo

The ruling Liberal Democratic Party’s Research Commission on the Tax System confirmed a draft of a special tax exemption bill in response to the Noto Peninsula Earthquake. The decision was made in a general meeting on Monday.

The bill would allow deductions for losses on household and business assets damaged by the earthquake to be included in last year’s income, subject to income tax. With the final tax return filing period beginning in mid-February, the government is aiming to pass the bill as soon as possible.

In addition, it would let sole proprietors deduct losses on business assets, such as machinery used for business purposes, as necessary expenses from last year’s taxable business income.

Under the special measure, the tax deductions would be made a year earlier than normal, thereby easing the burden on the victims more quickly.