Japan’s Corporate Income Tax—Overview and Challenges

Thomas Dalsgaard

No 2008/070, IMF Working Papers from International Monetary Fund

Abstract: The structure of Japan's corporate income tax system is broadly in line with those of other G7 countries. However, relatively high marginal and average effective tax rates prompt the question of whether adjustments should be considered to meet the objectives of promoting growth, investment and competitiveness in a revenue neutral manner. This paper discusses key issues and trade-off's related to changes in the corporate income tax system. It does not provide recommendations, but raises issues that could hopefully serve as useful inputs to the ongoing discussion and tax debate in Japan.

Keywords: WP; Japan; rate; tax rate; firm; income tax; rates in G7 Countries; depreciation system; enterprise tax; Japan tax; financing decision; accelerated depreciation; OECD tax database; cost of capital; Corporate income tax; Corporate taxes; Marginal effective tax rate; Average effective tax rate; Depreciation; Global (search for similar items in EconPapers)
Pages: 20
Date: 2008-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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