• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/18/2014

Japan - Corporate income tax rate reduction, effective April 2014 

April 18: With enactment of the 2014 tax reform legislation, a reduction of the corporate income tax rate is effective beginning April 2014.

The 2014 tax reform bill was passed by the Diet on 20 March 2014, and the amended tax laws were promulgated on 31 March 2014. This legislation included provision for repeal of the special reconstruction corporation tax one year ahead of the originally scheduled repeal date. Accordingly, the effective corporate tax rate is reduced from 38.01% to 35.64% for fiscal years beginning on or after 1 April 2014.

Other tax items included in the 2014 tax reform concern local taxes imposed on companies, changes to the international tax principle, and consumption tax.

Read a 2014 report [PDF 281 KB] prepared by the KPMG member firm in Japan: 2014 Tax Reform

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