Japan to reduce corporate income tax rate

The corporate income tax rate in Japan is known to be one of the highest worldwide. To encourage foreign companies to do business in Japan and make Japan a more attractive location for investments, prime minister Shinzo Abe is considering reducing the corporate income tax rate to a ‘competitive rate in the global market’ in the near future. Reduction in the corporate income tax rate is expected to revitalise the Japanese economy and encourage repatriation of Japanese multinationals that have moved their operations to low-tax jurisdictions due to the high tax rate in Japan. The current corporate income tax rate, a national tax levied on a company’s profits, is 25.50  per cent, and the effective tax rate (ETR) is 35.64 per cent. The ETR takes into account, in addition to the corporate income tax, various small taxes such as the Enterprise Tax, the Inhabitants Tax and the Special Local Corporation Tax.

The prime minister is positive toward reducing the corporate income tax rate and has advocated for a corporate income tax reduction at a seminar held to invite investments to Japan on 1 March in London. Since then, there have been active discussions among the key players in order to make the corporate income tax reduction happen. For example, the Government Tax Commission, which is an advisory panel to the prime minister, has established a specialised discussion group regarding corporate tax reform, and the discussion group has been having active discussion. Akira Amari, the minister of economic revitalisation, commented that the ETR should be reduced to around 29 per cent…

Click on the link below to read the rest of the DLA Piper briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer


3 Noble Street

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 542 (International 50)
No. of partners: 142.6