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

Japan
VAT, GST and sales taxes
• Consumption tax
•
(from 8% to 10%) will be postponed for 18 months to 1
April 2017. At the time of the increase, after gaining the
understanding of citizens including relevant businesses, a
reduced tax rate on certain items will be introduced.
•
that cross international boundaries such as the provision
of digital services (e.g., the distribution of electronic books,
music and advertisement) from overseas businesses
2015). Business to Consumer transactions will be taxed
by self-assessment by the overseas business. Business
to Business transactions will be taxed in principle by the
reverse charge mechanism, in which the domestic business
• The consumption tax treatment of in-bound e-commerce
transactions will be revised. Such transactions will be
subject to tax under the 2015 tax reform plan.
2.5 Fiscal stimulus in 2015
If Very or Somewhat likely, which tax measures do you think will
most likely be included (select all that apply)
2.6 Political landscape
• In November 2014, Prime Minister Abe dissolved the lower
postponed. The national election in the lower house was
power.
• As a result, the current Japanese tax policy environment is
expected to remain largely stable.
2.7 Current tax policy and tax administration
leaders
Tax policy leaders
• Shinzo Abe, Prime Minister
• Taro Aso, Minister of Finance
Tax administration leader
• Nobumitsu Hayashi, Commissioner of the National Tax
Agency
2.8 Key tax policy changes in 2014
• The 10% special corporate reconstruction surtax was
repealed. The effective corporate tax rate was reduced from
38.01% to 35.64% as a result.
• Various tax incentive measures that promoted “Abenomics”
were introduced.
• The basic principle of taxation on nonresidents and foreign
corporations was changed from the current “entire income
principle” to the “attributable income principle,” in line with
• In regard to PIT, the reduced tax rate (10%) on dividends and
capital gain income derived from listed stocks was abolished
and the original tax rate (20%) became applicable.
• The consumption tax rate (federal plus local) was increased
from 5% to 8% on 1 April 2014.
116 | The outlook for global tax policy in 2015