1. Latest News
  2. Submit Press Release
  1. PR Home
  2. Latest News
  3. Feeds
  4. Alerts
  5. Submit Free Press Release
  6. Journalist Account
  7. PRNewswire Distribution

Japan Lowers Corporate Tax to Boost Economy in its 2014 Tax Reform Proposal

The ruling parties of Japan have proposed changes to the effective Corporate Tax Rate on account of abolishment of the special reconstruction surtax, as part of the 2014 Tax Reform Proposal.

 
PRLog - Jan. 8, 2014 - SUNNYVALE, Calif. -- The ruling parties of Japan have proposed changes to the effective Corporate Tax Rate on account of abolishment of the special reconstruction surtax, as part of the 2014 Tax Reform Proposal. The 2014 tax reform bill submitted to Diet (Japan's bicameral legislature) will be applicable from the taxable years starting from 1 April 2014, if passed.

The main objectives of the bill are to sustain the government’s efforts to reenergize the Japanese economy, encourage investment by foreign entities and offer various tax cut measures for companies to boost the economy says Nair & Co. International Tax Consulting Team.

The most significant changes include:

*  Special Reconstruction Surtax – 10% surtax levied on corporate tax (i.e. 2.55%) is to be abolished one year early i.e. from tax years commencing April 1, 2014. This surtax was introduced under the Tax Reform 2012 in order to generate funds to reconstruct areas which were damaged during the March 2011 earthquake and tsunami.

* Consumption Tax – The government has decided to increase the consumption tax rate to 8% (currently 5%) effective 1 April 2014.

*  Effective Corporate Tax Rate – After the repeal of the special reconstruction surtax, the effective corporate tax rate will be reduced to 35.64% (currently 38.01%) effective 1 April 2014.

*  National Corporate Tax Rate – This will remain unchanged i.e. 25.5%.

*  Local Inhabitant Tax Rate – This will remain unchanged i.e. 5.2785% (20.7% on national corporate tax - 25.5%).

*  Local Enterprise Tax Rate – This will remain unchanged i.e. 7.552% which also includes the special local corporation tax.

Companies having operations in Japan or those planning to set base in the country may find the above proposals beneficial due to reduction in the effective corporate tax rate. Such companies may also consider monitoring further progress on the above proposals.

For more information about doing business overseas (http://www.nair-co.com/expanding-business-overseas.aspx) or to know more about Nair & Co.’s International Expansion Services (http://www.nair-co.com/) team please contact us (http://www.nair-co.com/global-offices.aspx).

Subscribe (http://www.nair-co.com/subscribe.aspx) to regular global tax compliance alerts from Nair & Co.

Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts (http://www.nair-co.com/newsandannoucement.aspx).

About Nair & Co.


Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com

Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867

Contact
Yvonne Smith
408 501 8867
***@nairusa.com

--- End ---

Click to Share

Contact Email:
***@nairusa.com
Source:Nair & Co.
Location:Sunnyvale - California - United States
Industry:Business
Tags:japan, international tax, Consulting Team, business in japan, corporate tax
Shortcut:prlog.org/12265350
Verified Account Email Address
Verified Account Phone Number

Disclaimer:   Issuers of the press releases are solely responsible for the content of their press releases. PRLog can't be held liable for the content posted by others.   Report Abuse

Latest Press Releases By “

More...

Trending News...



  1. SiteMap
  2. Privacy Policy
  3. Terms of Service
  4. Copyright Notice
  5. About
  6. Advertise
Like PRLog?
9K2K1K
Click to Share