Category Taxation in Japan

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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Japan To Access Tax Evades Computers and Emails

October 10, 2016 Taxation in Japan

Tax evadersTOKYO – The digital barrier used by Japanese tax evaders to hide from tax authorities may soon be coming down, as a new rules will soon be set out to grant tax inspectors power to inspect digital records.

By the end of the month the Ministry of Finance of Japan is set to release proposed new legislation allowing tax authorities to access digital records kept on the computers of alleged tax evaders.

Currently tax legislation in Japan does not explicitly allow tax authorities to conduct overnight raids on alleged tax evaders, or seize the digital data stored on the computers and servers of alleged tax evaders.

Under the scope of the expected rules, tax inspectors will be allowed to copy and utilise the data stored on the evader’s digital devices.

Further, tax authorities will be eligible...

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Fitch Warns Japan of Possible Downgrade Following Tax Delay

June 14, 2016 Taxation in Japan

Consumer spending in JapanTOKYO – Japan’s decision to delay its hike to the rate of sales taxes could lead to a downgrade in its credit rating.

On June 13th the international ratings agency Fitch Ratings announced that it has decreased its outlook for the sovereign debt of Japan, due to the government’s decision to delay the implementation of a hike to sales taxes.

It was stated that the planned hike to the rate of sales tax was a fundamental element of the country’s fiscal consolidation plan, and its delay now puts the government commitment to the consolidation into doubt.

While the government of Japan claimed that it would take steps to shore up the tax revenues lost due to the delay of the tax hike, it gave no indication of what the measures may be or when they would be implemented.

Fitch has not yet downg...

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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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