OECD: BEPS project update with developments of Asian countries
In order to stop tax avoidance and evasion Asian countries are actively taking part with the Organization for Economic Cooperation and Development (OECD)’s plan. The OECD’s Action Plan is far reaching and will help support local Asian
See MoreJapan: Planning to introduce B2B e-commerce tax
The Japanese International Taxation Discussion Group has suggested following methods for pick up “Consumption Tax” which are: Submission of VAT reverses charge so that the local Japanese Company reports the acquisition and supply in its
See MoreJapan: Corporate tax rate will be lowered below 30%
Japan’s Prime Minister announced on 24 th June 2014, that the government will lower Japan's corporate tax rate from 35% to below 30 %. The Government targets to return to a principal fiscal balance in 2020. However the final corporate tax rate
See MoreJapan: From 2015 Corporate Tax rate will decrease
From 2015, Japan's corporate tax rate will be reduced from its current rate 36% to below 30%. Corporate tax cuts will now form a major part of the Government's 2015 policy framework, which will concentrate on PM’s promised growth strategies. This
See MoreJapan Takes Action on Some BEPS Items
Japan’s Cabinet Office Tax Commission has given its attention to four base erosion and profit sharing (BEPS) items, including the controversial Action 13 which relates to transfer pricing documentation. The other items under consideration by Japan
See MoreJapan Planning Corporate Tax Cut Next Year
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
See MoreJapan and the European Union Plan FTA By 2015
Japan and the EU are to conduct a one year review with the intention of concluding a free trade agreement. This proposed FTA will be an important part of plans to strengthen the economic relationship between the EU and Japan. The FTA is to deal with
See MoreJapan – Possible BEPS-related implications under foreign dividend exclusion rule
In Japan the Cabinet Office has published a discussion paper setting out current tax issues for consultation. This paper concerns the developments in respect of base erosion and profit shifting (BEPS) and the implications of the issues for the
See MoreJapan – Corporate income tax rate reduction effective April 2014
Following the enactment of Japan’s 2014 tax reform a decrease of the effective corporate income tax rate is in force from April 2014. The fall in the effective tax rate is a result of the repeal of the special reconstruction surtax. This surtax
See MoreJapanese Panel Looks For Gradual Corporate Tax Cuts
There has for some time been concern in Japan that the relatively high effective corporate tax rate is making the country less competitive. There has therefore been pressure for the rate to be lowered to a level more in line with those of other
See MoreJapan and US Hold Talks On TPP
Talks were held between Japan and the US on 9 and 10 April 2014 to consider the remaining issues relating to the terms of the planned Trans-Pacific Partnership (TPP) trade agreement. The main problems between the US and Japan concern Japan’s
See MoreJapan: 2014 tax changes
Some changes to Japan’s tax law announced on 1 October 2013 were passed on 20 March 2014. The “attributed income principle” in respect of the profits of permanent establishment, as set out in the authorized OECD approach, will be adopted. The
See MoreJapan: Increased focus on transfer pricing in tax audit
Transfer pricing audits in Japan are conducted separately from the general corporate tax audits, by a specialized transfer pricing audit team within the tax authority .The 2011 revision of the tax system in Japan included changes and clarifications
See MoreChina-Japan-ROK Free Trade Zone Negotiations
On March 4 2014 the fourth round of China-Japan-ROK Free Trade Zone negotiations was held in Seoul, Korea (ROK). The chief negotiator and Assistant Minister of Commerce of China led a delegation to attend the negotiations. Delegations from Japan
See MoreJapan: Confirms Consumption Tax Rate Changes by 2015
From April 1, 2014 to September 30, 2015, the rate of Japanese consumption tax will be increased from the current 5% rate to a higher 8% rate. The government is also considering a further increase from 8% to 10% from October 1, 2015. Also under
See MoreSweden: Protocol to DTA with Japan signed
The Policy Research Institute of Japan's Finance Ministry confirmed on December 5, 2013 that the governments of Japan and Sweden have signed a Protocol amending the current tax treaty. The main changes are: expansion of the scope of exemption of
See MoreJapan Studies Corporate Tax Rate Cut for Growth Strategy
Japan's Prime Minister is looking again at lower corporate taxes to provide a new impetus to growth in the economy. The Finance Minister has however again cast doubt on whether such a policy is viable at the present time. In a meeting of the
See MoreJapan- Main corporate income tax rate
A reconstruction surcharge of 2.55% applied in 2013 but does not apply after 1 April 2014.The effective corporate tax rate taking into account the local enterprise tax and local inhabitant tax will therefore be reduced to 35.64% (previously 38.01%)
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