The main objective of the 2007 Tax Reform Act is to invigorate small and medium sized enterprises and enhance Japanese competitiveness in the international market. Compared with the 2006 tax reform which was primarily tax increases such as the abolition of Special tax reduction and non-deductible director's compensation for one-man family corporation, the 2007 Tax Reform focuses on the economy. On the other hand, compliance with the New Company Act and cost burdens from the implementation of Japanese SOX is an administrative burden on many corporations. The following summary does not cover all aspects of the Act, but only includes topics which we felt would be of the most interest to our clients.

1.		Related to the Company Act・Revise tax rate both National and Local tax
2.		Taxation on Financial, Securities & Housing
3.		Family Corporations surtax & Directors' Compensation
4.		Depreciation
5.		Lease Transactions