Category Taxation in Japan

Japan Approves “Sayonara Tax”

April 17, 2018 Taxation in Japan

Departure tax JapanTOKYO – Japan’s will soon charge you to leave the country, and will then use the money to get tourists into the countryside.

Last week the government of Japan approved a new departure tax, which has already come to be called the “sayonara tax”.

From January 7th, 2019, anybody departing the country by aeroplane or ship will be required to pay a tax of JPY 1 000.

The only notable exceptions to the tax will be children under the age of 2, and travellers who are leaving the country within 24 hours of their initial arrival.

The tax is expected to raise a total of JPY 6 billion, in the first 3 months of next year alone, with the total rising to as much as JPY 43 billion per year by 2020.

The government has already set forward rules which stipulate that any revenues gathered from the tax wi...

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Japan Eyes 50% Casino Tax

February 21, 2018 Taxation in Japan

Japan's casino taxesTOKYO – Japan’s upcoming casino rules could come with a hefty tax burden of up to 50 percent.

New information circulating in Japan’s national media indicate that the government intends to introduce some punitive taxes on the revenues earned in casinos across the country.

Casinos are not yet legal in Japan, and, currently, work is being done to legalize and allow the operation of Integrated Resorts which include casino facilities.

The new information indicates that these Resorts will face a tax on their revenues of 30 percent.

Any facilities which see revenues exceeding JPY 300 billion will face a tax of 40 percent, while those with revenues of JPY 400 billion will face an even more punitive tax rate of 50 percent.

The rates are much higher than the 7...

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Japan Sets Out on Tax Reform

December 15, 2017 Taxation in Japan

Japanese taxTOKYO – Japan will hikes taxes for some, while pushing big businesses to boost wages.

The government of Japan has approved a sweeping set of tax reform measures aimed at boosting tax revenues, while also increasing inflation in the country.

Japan has faced deflation for a significant period of time, and, further, an ageing population means that the country is expecting to feel the economic cost of a rising welfare bill in the near future.

As a means countering the unwanted effects of deflation and welfare costs, the government hopes to encourage large businesses to increase wages, in turn boosting consumer spending.

Under the scope of the tax reform, the rate of corporate income tax in Japan would fall from 30 percent to 20 percent for businesses which stop hoarding cash in order to dra...

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Japan Eyes Tax Reward for Wage Hikes

December 4, 2017 Taxation in Japan

japanese-yen-notes-757cfTOKYO – Wage hikes and robots could soon help Japanese companies slash their tax obligations.

The government of Japan is evaluating potential new tax break which could see the business tax burden reduced by nearly a third.

Japan has spent the last several years taking steps to reduce the level of corporate income tax faced by businesses, which is expected to fall to as little as 29.74 percent in the business year starting April 2018.

However, the government is now looking at reducing the rate to as low as 20 percent.

The reduction will come in the form of deductions made available to businesses which actively invest in human resources, such as wage hikes and training programs.

Some deductions will also be available to businesses which invest in technologies to increase output and produ...

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Japan Exit Tax Will Pay for Safety System

November 21, 2017 Taxation in Japan

First Class Check-in Counter at NRT Narita Airport - Japan AirlinesTOKYO – Japan could soon have a system to keep tabs on all Japanese tourists around the world, paid for by all the international and local tourists leaving the country.

The Japan Tourism Agency is looking at using the revenues raised from a proposed exit tax to fund the development of a system to check on the safety of Japanese tourists travelling abroad.

Currently, the government of Japan is looking at implementing an exit tax of JPY 1 000 per person leaving eh country on a plane or ship, with the charge to be added to the fare paid for the travel.

The Agency hopes to use the funds to create a system which will centrally manage the records and information about Japanese travellers who are overseas.

The new system will allow the government to easily collect information on the status and...

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