Category Taxation in Japan

Japan Needs to Drop Bitcoin Tax

March 2, 2016 Taxation in Japan

TOKYO – Japan’s tax treatment of crypto-currencies is forcing consumers to buy digital coins from overseas in order to skip their tax obligations.

Ongoing controversy on the taxation of Bitcoins in Japan has come to a head, with calls being made for the digital currency to be exempt from consumption tax.

Bitcoins, and all other crypto-currencies, currently fall within the scope of the national 8 percent sales tax, if purchased with Yen from a local exchange.

If Japanese consumers purchase coins from overseas dealers, then they are liable to pay tax on the import, however due to the digital nature of the currency the national tax authorities have no means of determining when a purchase is made.

The oversight in the regulations of the sales tax has reputedly forced many Japanese consumers t...

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Tax Delay Leads to Downgrade for Japan

April 28, 2015 Taxation in Japan

TOKYO – By delaying the upcoming hike to the rate of sales tax, Japan has garnered a downgrade to its credit rating.

On April 27th the international ratings agency Fitch Ratings downgraded the ratings of the sovereign debt of Japan, due to the country’s inaction to finding sources of revenues to compensate for the delay in the implementation of the country’s controversial hike to sales taxes.

Japan was scheduled to raise the rate of sales tax from 8 percent to 10 percent in April 2017, following an increase of 3 percent in April 2014.

According to Fitch Ratings the government of Japan has not done to account for the loss in revenues which will arise due to the delay in the implementation the raised tax rate.

It was also noted that last year the rate of corporate income tax in Japan w...

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Japan to Lower Corporate Taxes

December 31, 2014 Taxation in Japan

TOKYO – The government of Japan is encouraging businesses to raise employees’ salaries by reducing the taxes faced by business.

On December 30th the ruling coalition approved a cut to the rate of corporate taxes in the country, while giving indication that even further cuts may be enacted in coming years in order to boost economic activity.

Currently the top effective tax rate on corporate profits in Japan is 34.6 percent, however, under the details of the government’s proposal, the rate will fall to 32.1 percent in April, falling to a further 31.3 percent in April 2016.

The cuts are expected to result in the loss of tax revenue collections of approximately JPY 400 billion over the course of the next two fiscal years.

The reduction in the tax obligations faced by businesses is intende...

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Japan May Delay Sales Tax Hike

November 18, 2014 Taxation in Japan

Sales Tax in JapanTOKYO – Japan’s economy has taken a sudden plunge, casting some doubt on weather the government will proceed with the hike to sales tax planned for next year.

According to new information made available by the government of Japan on November 17th, the economy of Japan has slid into a recession, and now some economists pinning the blame on the increase to the rate of the country’s sales tax from 5 percent to 8 percent in April this year.

Over the third quarter of this year Japan was expected to see a 2.1 percent rise in the national GDP, and a 0.8 percent rise in consumer consumption, however, in reality, the GDP actually shrank by 1.6 percent and private consumption only rose by 0.4 percent.

The disappointing economic performance in the third quarter follows a sudden decline in econom...

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Taxes Boost Inflation in Japan

June 27, 2014 Taxation in Japan

Consumer spending in JapanTOKYO – The recent tax hikes in Japan have seriously hampered consumer demand in May, as shoppers spent more in the month prior to the increases.

Inflation levels in Japan over the month of May rose by the highest amount since 1982 due to the country’s recently implemented sales tax hike, according to new information released on June 27th by the Ministry of Internal Affairs.

Consumer prices in the country rose by 3.4 percent in May, compared to the same month in the previous year, following a year-on-year rise of 3.2 percent over the month of April.

The sudden increase in prices was accompanied by a reduction in consumer spending of 4.6 percent in April, and a further 8 percent over the course of May.

The sales tax in Japan was raised from 5 percent to 8 percent in June this year, and ...

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