Japan to Tackle ‘¥100 Million Wall’ with Lower Threshold for Tax Surcharge on Ultra-High Earners

Japan to Tackle ‘¥100 Million Wall’ with Lower Threshold for Tax Surcharge on Ultra-High Earners

For earned income such as wages, the combined income tax and local inhabitant tax rate rises with income, peaking at 55%. By contrast, financial income from sources such as capital gains from stock sales is taxed at a flat 20%. As a result, the greater the share of financial income among ultra-high earners, the lower their overall effective tax burden tends to be.