corporate taxation

Ruling coalition reaches deal to lower corporate tax in 2016 below 30%

The ruling coalition parties, LDP and Komeito, has reached an agreement on lowering the effective corporate tax rate to 29.97% in fiscal year 2016, reports Nikkei (J) on December 3rd.  The new rate represents a drop of more than 2% from the current 32.11% rate, and would bring the country on par with countries such as Germany.

Effective corporate tax rate below 30% in 2017: Reports

Nikkei Asian Review reports that the Japanese government is planning to cut the effective corporate tax rate to below 30% in fiscal 2017, starting in April. The effective corporate tax rate in Japan currently is 32.11%, this rate was set after cuts in corporate taxation this year. 


Government to tighten tax breaks for interest payments to prevent tax evasion multinationals

The Japanese government considering tightening of tax breaks for interest payments by companies to prevent tax evasion by multinational companies making use of differences in taxation systems in countries.

Broadening of corporate tax breaks for executive compensation – linked with ROE

The Japanese government is investigating broadening of preferential tax treatment for compensation of company executives. Because the possibility of lowering of corporate taxation is limited to profit and fixed income earnings, the government is now also looking into compensation linked to return-on-investment (ROE) or return-on-assets (ROA).  The options for compensation of executives’ activities will be broadened, and this will (hopefully) push the improvement of profits and investment returns. 


Government considering revision of special tax measures to fund decreases in corporate taxation

Decreasing the corporate taxation rate to the 20%-level to make Japan an more attractive business destination and increase employment is one of the main objectives of the current Abe government.  However, to make up for the expected decrease in tax revenues the government is looking into revision of 16 special tax brake measures, which wind up at the end of this fiscal year, reports NHK online

JTPP Webinar: Tax obligations when starting your business in Japan

JTPP Helpdesk will organize a webinar on Japan taxes on June 23, entitled:

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