Japan considering 2.5% corporate tax cut from fiscal 2015: media
[TOKYO] Japan's government is considering lowering the corporate tax rate, one of the highest among major economies, by 2.5 percentage points next fiscal year to increase corporate competitiveness, the Nikkei newspaper reported.
Japanese Prime Minister Shinzo Abe had been planning to lower the corporate tax rate over several years to around 20 per cent from more than 35 per cent currently.
However, Abe wants to make a big cut in tax rate from the next fiscal year starting in April to kick start his economic reform agenda after a comfortable win in a lower house election on Sunday, the Nikkei said on Tuesday.
Abe's ruling Liberal Democratic Party will debate tax reform starting on Tuesday and with the aim of completing its tax reform plan on Dec 30, the Nikkei said.
It is possible that the government could cut the corporate tax rate by more than 2.5 per cent in fiscal 2016, the Nikkei said.
Other steps the government is considering are limiting the amount of losses companies can carry forward to lower their tax burden and exempting small firms from other measures to expand the tax base, the Nikkei said.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Sunak says UK to raise defence spending amid global threats
China’s central bank hints it may add treasury bond trades to policy toolkit
US business activity cools in April; inflation measures mixed
India’s inflation at risk from extreme weather, geopolitical issues: central bank
Thailand to replace military-appointed Senate, reduce its powers
Bankers lose hope of London IPO revival for another year