IMF Working Papers

Japan’s Corporate Income Tax—Overview and Challenges

By Thomas Dalsgaard

March 1, 2008

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Thomas Dalsgaard. Japan’s Corporate Income Tax—Overview and Challenges, (USA: International Monetary Fund, 2008) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Average effective tax rate, Corporate income tax, Corporate taxes, Depreciation, Marginal effective tax rate, National accounts, Revenue administration, Tax policy, Taxes

Keywords: Accelerated depreciation, Average effective tax rate, Corporate income tax, Corporate taxes, Cost of capital, Depreciation, Depreciation system, Enterprise tax, Financing decision, Firm, Global, Income tax, Japan, Japan tax, Marginal effective tax rate, OECD tax database, Rate, Rates in G7 Countries, Tax rate, WP

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2008/070

  • Stock No:

    WPIEA2008070

  • ISBN:

    9781451869323

  • ISSN:

    1018-5941

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