Japan Azerbaijan Tax AgreementAugust 2023
The 2022 double tax agreement, DTA, between Japan and Azerbaijan entered into force on August 4, 2023 applying from January 1, 2024.
According to the DTA the tax withholding rates are 7%/10% for payments of dividends.
For payments of interest and royalties the tax withholding rate is 7%.
The DTA is aimed to boost the economic relations between the two countries.
Japan Algeria Tax AgreementMarch 2023
Japan and Algeria signed on February 7, 2023 a double tax agreement, DTA, aimed to boost the economic relations between the two countries.
The tax withholding rates according to the DTA are 5% for dividends, when holding 25% or more of the paying company, in other cases 10%.
The withholding rate for payments of interest is 7%, 10% for paying of royalties.
Japan Colombia Tax TreatySeptember 2022
On September 4, 2022 the previous double tax agreement, DTA, between Japan and Colombia entered into force applying from January 1, 2023.
The DTA is aimed to boost the bilateral economic relations between the two countries.
When in force the tax withholding rates according to the DTA will be for payments of dividends 5%/10%/15%.
The withholding rate for interest will be 0%/10%.
For payments of royalties the rates will be 2%/10%.
Japan Spain Tax TreatyMay 2021
The 2018 double tax agreement, DTA, between Japan and Spain entered into force on May 1, 2021 applying from January 1, 2022.
According to the DTA the tax withholding rates for payments of dividends are 0%/5%/10% depending on certain terms.
The tax withholding rates for payment of interest are 0%/10%.
Tax on royalties applies only in the state of the recipient.
Japan Latvia Tax TreatyJuly 2017
The double tax treaty, DTA, between Japan and Latvia entered into force on July 5, 2017 applying from January 1, 2018.
According to the DTA the withholding rates will be 0%/10% for payments of dividends.
The withholding rate for payment of interest will be 0%/10% too.
Japan Corporate Income Tax RateApril 2015
Starting April 1, 2015 the new national corporate income tax rate in Japan is 23.9% compared to the previous 25.5% rate.
The effective income tax rate for big companies in Tokyo, including inhabitant and local enterprise tax is now 33.06% compared to the previous 35.64% rate.
Japan Consumption Tax IncreaseMay 2014
Starting April 1, 2014 Japan's consumption tax rate increased from the previous 5% rate to 8%.
The rate will be further increased to 10% in October 2015.
The increase is expected to reduce consumers spending.
Japan UAE Double Tax TreatyJune 2013
Japan and the United Arab Emirates, UAE, signed on May 2, 2013 a double tax treaty, DTA.
The treaty includes an exchange of information clause and when in effect withholding tax rates of 5%/10% from dividends, 10% from royalties and 10% from interest.
The tax treaty has yet to be ratified by both countries.
Japan's New 25.5% Corporate Income Tax RateApril 2012
Starting April1 , 2012 there is a significant decline in the Japanese corporate income tax rate from the previous 30% down to 25.5%.
SMEs will pay on their first 8 million yen ,subject to terms, 15% compared to the previous 18% rate.
All companies will also pay a10% surtax in the three years period starting April 1, 2012.
Japan's Corporate Tax ReductionDecember 2010
The Japanese prime minister Naoto Kan ordered on December 13 a 5% reduction of the corporate tax in the next fiscal year according to Bloomberg.
Currently the Japanese corporate tax , including local taxes, is around 40% well above the rate in other countries.
The cutting of the corporate tax rate by 5% is the first step in Japan's effort to create an attractive investment environment.
The tax cut will force Japan to find alternative resources to fill the expected revenue gap, e.g. by widening the corporate tax basis.
Japan's Cigarettes Tax HikeOctober 2010
Japan imposed on October 1, 2010 a record 40% tax on cigarettes.
The price of a popular pack of 20 cigarettes was raised by 100 yen, from the previous 300 yen to a new 410 yen .
The new tax is aimed to encourage Japanese to quit smoking.
The government aims to further increase the price of a pack to 700 yen, similar to the price in Europe and the U.S.
Japan Switzerland Revised DTAMay 2010
Japan and Switzerland signed on May 21, 2010 a new protocol amending the existing DTA, double tax treaty, between the two countries.
The new protocol includes provisions on exchange of tax information in accordance with the OECD model and reduction/exemption in certain withholding taxes compared to the previous DTA. e.g. payment of dividend to a company holding at least 10% of the voting rights (previously 25% holding) will be subject to 5% withholding, compared to the previous 10% withholding rate.
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Japan's Stimulus PackageApril 2009
Japan's prime minister Taro Aso announced on April 10, 2009 a new historic $ 150 billion (Yen 15 trillion ) stimulus package.
The new plan follows two previous stimulus packages totalling Yen 12 trillion.
Presently Japan faces its worst recession since World War 2, mainly due to the sharp decline in exports to the U.S.
The new package which has to be approved later in April includes, inter alia, benefits granting a $ 2,500 bonus to people trading old cars 13 years or more, benefits towards unemployment, companies in crisis, infrastructure, health and welfare.
The prime minister also supports dramatic tax reforms, including increase of the consumption tax.
Japan Australia Double Taxation Treaty- New Double taxation AgreementAugust 2007
Japan and Australia agreed to revise the double taxation treaty, already existing for 38 years.
The revised treaty would reduce withholding taxes, mainly inter company dividends and interest.
The revised treaty is expected to improve the investment relationship between the 2 countries.
The new treaty has yet to be approved by the parliments in Japan and Australia.
Japan and UK New Double taxation AgreementOctober 2006
On 12.10.2006 the new double taxation agreement between Japan and the UK entered into force.
Japan Social SecurityJuly 2005
Japan and The U.S. signed a double social security tax agreement, effective 1.10.2005.
According to the treaty credits from both countries could be combined together.
The tax on the same income would be paid in one country only.
Japan Income TaxApril 2005
From 1.4.2005 companies can get a tax credit for training expenses. The credit is 10% of the company's corporate tax,or 20% of the increase of the training expense compared to the average expense in the last 2 years,whichever is smaller.
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