The Ministry of Internal Affairs and Communications published on July 31, 2025, an interim report on prefectural resident tax interest income tax by the "Local Tax System Study Group" established within the Local Government Finance Council. This study group was established in February 2025 to examine fundamental measures for optimizing tax revenue attribution in prefectural resident tax interest income tax, based on the ruling party tax reform outline.
Prefectural resident tax interest income tax is a local tax levied on interest income, but the current system is said to have issues with tax revenue attribution mechanisms. The study group conducted discussions from expert perspectives on optimization measures considering these challenges and compiled them as an interim report.
This interim report presents analysis of current system problems and improvement directions, serving as important foundational material for future local tax system reforms. The Self-Government Tax Affairs Bureau Municipal Tax Division of the Ministry of Internal Affairs and Communications serves as the secretariat, examining system design aimed at improving fairness and efficiency of the local tax system.