Category Taxation in Japan

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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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...

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Japan to Implement Unified Beer Tax

December 22, 2016 Taxation in Japan

Beer Taxes in JapanTOKYO – Beer pricing in Japan could undergo a significant change, as the government mulls an overhaul to the taxation of the popular drink.

The government of Japan is proposing new tax regulations which would see a reduction in the price high-malt beers, with a corresponding price increase for low-malt beers.

Current regulations in Japan define beer as a beverage which has a malt content of at least 67 percent, with the lower malt-content beers being defined as either “happoshu” or “hodgepodge”.

The newly proposed legislation would see the malt threshold lowered to 50 percent, a moved which would see a greater range of imported beverages being defined as beer.

The current taxes on beer are set at JPY 77 for a can of beer, JPY 47 for happoshu, and JPY 28 for hodgepodge.

If the new ...

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Japan to Drop Bitcoin Sales Tax

December 9, 2016 Taxation in Japan

bitcoin tax in JapanTOKYO – Japan’s market for Bitcoin could recieve a long-awaited boost, as the government looks to drop a tax on the sale of crypto-currencies.

According to information released by CoinDesk, an international news outlet about crypto-currencies, Japan may soon drop its tax on the sale of Bitcoin and other crypto-currencies.

Currently, the purchase of crypto-currency in Japan is subject to a special 8 percent sales tax.

The drop in the tax was apparently detailed in a document released on December 8th by the leading Liberal Democratic Party and the Komeito party.

It is expected that if the tax is enacted, the government would institute a grace period of one months to allow currency retailers to adjust to the changes prior to the tax being dropped entirely.

It is expected that the removal of...

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