Business Insights

Japan Corporate Tax Rates Highest In World (G20)

Lot’s of good reasons for the Japanese government to get with it. Taxes are high in Japan. It seems we have inherited a broken tax system from the United States after the war.

Clearly time for some changes.

Japan Leads G-20 In Corporate Tax Rate For 9th Year
TOKYO (Nikkei)–Japan’s effective corporate tax rate remains the highest among the Group of 20 leading economies for a ninth straight year, standing at 40.69% as of July, a survey by KPMG International shows.

Japan’s rate, which includes national and local taxes, far exceeds the world average of 24.99% based on 114 countries. That average has fallen 0.45 percentage point from last year and more than 6 points from a decade ago.

The U.K. and New Zealand are planning further tax cuts for businesses, according to KPMG. Meanwhile, in Japan, the Ministry of Economy, Trade and Industry is arguing for a 5-percentage-point reduction in the national corporate tax next fiscal year, but it faces resistance from the Finance Ministry and others stressing fiscal discipline.

Quoted article here.

(The Nikkei Oct. 23 morning edition)

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