Z’xent Pro has been watching the discussions in the National Diet closely, especially those concerning the new tax reform bill that was proposed last yet. The bill was scheduled to take effect in April of this year for the fiscal year, but the earthquake and tsunami concerns caused the plan to be delayed. As of today, the bill is not dead but remains under formal deliberation. If passed, the Japanese tax rate for businesses (local and national taxes combined) will be reduced by 5%, or to 35.64%. The current rate is 40.69%, roughly equal to the rate businesses in California pay in America. Also, if the bill taxes the new rate will be roughly the same as France’s rate.
Z’xent Pro will continue to watch the debates and update our website as more information becomes available. If you have questions about business taxes in Japan, please don’t hesitate to contact us.