General Insurance Association of Japan shows tax reform requests FY2024

The reforms shall contribute to economic growth and societal development.

Japan’s General Insurance Association (GIAJ) has shared its fiscal year 2024 tax reform requests which shall contribute to economic growth and societal development within the general insurance sector.

Amidst an alarming increase in natural disasters, GIAJ aims to Enhance the Catastrophic Loss Reserve system for fire insurance to support stable operations.

The association would also like to consider the characteristics of the general insurance business during the revision of international taxation rules.

Further, it targets to solve consumption tax issues related to general insurance, such as "tax accumulation" and "tax neutrality impediment."

GIAJ stated it wants to remove the special corporate tax on defined contribution pension plans for individual and corporate pension funds.

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To encourage the adoption of the residential earthquake insurance premium tax deduction system, GIAJ seeks to consider measures.

The remaining reforms are identifying improvements to the non-taxable dividend income system to eliminate double taxation of dividend income and continue the current corporate enterprise taxation formula for general insurance businesses, which is already income-based.