Category Taxation in Japan

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...

Read More

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...

Read More

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...

Read More

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...

Read More

France Replaces Wealth Tax with Luxury Tax

October 9, 2017 Taxation in Japan

Tax on luxury yachtsPARIS – France will soon tax luxury goods and vehicles, as taxing them will not be detrimental to the economy.

Over the weekend the ruling political party of France indicated that in the near future it will propose the implementation of a tax on non-productive luxury items, such as gold, luxury yachts, and supercars.

The leading party campaigned on a promise of removing the long-standing wealth tax, which is levied on all French taxpayers with assets exceeding EUR 1.3 million in value.

The party leader, Emmanuel Macron, has come to be criticised as a “president of the rich”.

The party has now said that while the wealth tax will be dropped, it will be replaced with the tax on luxury items.

It is expected that the new tax will result in greater levels of tax revenues for the governme...

Read More