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2015 Tax Reform Proposals - Announced

Japan:Inbound Tax Alert January 2015,No.10

On 30 December 2014, the ruling coalition parties of Japan released the Outline of the 2015 Tax Reform Proposals (the, “Proposal”). The main focus of the Proposal from a corporate tax perspective is to promote growth by reducing the effective corporate tax rate and incentivizing companies to increase wages for their employees. (Japan:Inbound Tax Alert January 2015,No.10)

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On 30 December 2014, the ruling coalition parties of Japan released the Outline of the 2015 Tax Reform Proposals (the, “Proposal”). The main focus of the Proposal from a corporate tax perspective is to promote growth by reducing the effective corporate tax rate and incentivizing companies to increase wages for their employees. At the same time, in order to secure sufficient tax revenue, amendments aimed at expanding the corporate tax base and increasing non-income based taxes are proposed. Other notable proposals include provisions to align with the BEPS projects promoted by the G20 and OECD, and the expected changes to the treatment of digital services for Japanese consumption tax (“JCT”) purposes.
This alert highlights several of the significant proposals that may affect foreign companies doing business and foreign nationals working in Japan. It should be emphasized that these tax proposals have not been enacted yet and could change prior to becoming law.
 

>> Click for Japanese [2015年度税制改正大綱]

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