Japan Tax Case Study

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Japan - a sovereign unitary state composed of 47 prefectures, bringing together 1,718 municipalities, towns, districts, each of which has its own budget.
The current tax system in Japan was formed in the post-war period (1950), when the policy of the Japanese government in the field of taxation has played an important role in ensuring the general conditions of socio-economic development of the country, and as a means of industrial policy and the accelerated technical modernization. Principles of modern taxation system were formulated in recommendations of the "Shoup mission" which had the goal of the implementation of "the world's best tax system."
However, the Japanese government has come very selectively to translate the recommendations into practice and soon was engaged in adapting tax policy to the social and cultural characteristics and pressing …show more content…

Random revenues.
9. Mixed, miscellaneous income.
10. Income from equity.
For most of them established tax incentives or tax exemptions. In addition, regardless of the value of income every resident of Japan is obliged to pay tax on lodging.
The taxation system in Japan is exceptionally flexible and highly adaptive, responsive to all significant changes, both in the economic and social spheres. Modern Japan's tax system is characterized by a moderate level of the tax burden. In Japan, companies have withdrawn about 50% of the profits. The negative impact of this fiscal orientation profits tax is offset by an active industrial policy.
Flexible tax system assumes dependence of the level of taxation of the income, property and so on. The level of tax rate should be set taking into account the capacity of the taxpayer, i.e, the level of income.
System of decrease in the level of taxation on companies in Japan distributed profits are taxed at a lower corporate tax rate.
Local taxes impart flexibility to the tax system, as enable local governments to quickly mobilize funds to finance the social needs of a particular

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