Monthly Archives November 2017

Offshore Retailers Face Tax in Japan

November 2, 2017 Taxation in Japan

Online tax in JapanTOKYO – Japan is cracking down on online retailers who skip taxes by not having an office in the country.

The government of Japan recently announced that it is looking to amend current legislation to update the definition of a permanent establishment of a business, in an effort to bring a number of online businesses into the country’s tax net.

Currently, Japan applies corporate income tax to businesses which have a permanent establishment in the country.

The current definition of permanent establishment primarily consists of offices, and misses warehouses and distributions centres.

The specifics of the tax mean that online retailers which do not have an office in the country, but have a distribution centre, can earn significant profits from Japanese customers, but not pay any tax on t...

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Japan’s Exit Tax Could Kill Jobs

November 1, 2017 Taxation in Japan

Japan Air TaxTOKYO – A new tax in Japan will lead to a boost in tax revenues or a drop in GDP and a sharp drop in aviation jobs.

Late last week the International Air Transport Association issued a warning that the proposed exit tax on flights from Japan could result in thousands of lost jobs and a significant reduction in the national GDP.

The current proposal for the tax is a charge of JPY 1 000 per person who leaves the country on an international flight.

Currently, an approximate 24 million tourists and a further 17 million nationals per year fly out of Japan.

If the tax does not reduce the number of flights, then the measure could bring in as much as JPY 41 billion.

However, the International Air Transport Association believes that the tax could reduce the number of flights by 7 million passengers...

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