There are plans to lower the corporate tax rate following the work of the Tax Commission appointed by the Japanese government. The Commission suggested an eventual reduction of the corporate tax rate to around 25 percent, and the Deputy Economy Minister has suggested that a reduction to less than 30 percent could be put into effect within one year. The tax rate needs to be more competitive in order to attract more investment from foreign and Japanese companies. Another move could be to widen the tax base, reducing the number of tax exemptions and thereby protecting government revenue.
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Japan and the European Union Plan FTA By 2015
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