ey-global-tax-policy-outlook-for-2015

Japan
Tax policy and
controversy
Koichi Sekiya
koichi.sekiya@jp.ey.com
+81 3 3506 2447
1
| Tax rates (2014–15)
2014 2015 Percentage
change
Top corporate
income tax (CIT) rate
(national and local
average, if applicable)
35.64%
(including
local corporate
taxes)
33.10% 1
(including
local corporate
taxes)
-7.1%
Top individual income
tax rate (national
and local average, if
applicable)
40%
(10%, plus
additional
local individual
income tax rate)
45% 2
(10%, plus
additional
local individual
income tax rate)
12.5%
Standard value-added
tax (VAT) rate
8%
(from
1 April 2014)
(consists of the
national rate of
6.3% and local
rate of 1.7%)
8% 3
(from
1 April 2014)
(consists of the
national rate of
6.3% and local
rate of 1.7%)
—
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2
| 2015 tax policy outlook
2.1 Key drivers of tax policy change
•
within the Japanese economy and to achieve adequate economic growth for
the future.
•
and cope with an aging population and low future birthrate.
Content provision date
25 November 2014
1
2 The top marginal rate (income exceeding JPY40 million) for national individual income tax will be
increased from 40% to 45% from 1 January 2015.
3
as economic conditions after the initial tax rate hike (1 April 2014) will not accommodate an additional
increase.
112 | The outlook for global tax policy in 2015