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30 Dec 2014
Japan to cut corporate tax rate in April 2015 – AceTrader
FXStreet (Barcelona) - The AceTrader Team shares the Reuters’ report on Japan’s tax reform plan aimed at cutting the corporate tax rate by 2.51% in April 2014, with Abe hoping for a positive impact on wages and consumer spending.
Key Quotes
“Reuters reported Japan's ruling coalition has approved a tax reform plan that will cut the corporate tax rate from Apr and pledge further reductions in coming years in a bid by Prime Minister Shinzo Abe to boost profitability and bolster economic growth.”
“The pledge contained in a draft of the tax reform plan reviewed by Reuters on Tuesday would cut the overall effective corporate tax rate by 2.51 percentage points to 32.1%.”
“The plan was set to be approved by Abe's LDP n coalition partner Komeito, early on Tuesday afternoon. The cabinet is expected to approve it in early January. Abe hopes the tax cut will encourage companies to raise wages, which in turn should spur consumer spending.”
“The effective corporate tax rate is 34.6% for big firms based in Tokyo, among the highest in the major economies. The average corporate tax rate stands around 25% among OECD economies."
"Abe and his ruling coaling won a majority in snap elections this month, giving him a fresh mandate to push through his "Abenomics" stimulus policies. The economy unexpectedly slipped into recession this year after an increase in the national sales tax in April hit consumer spending much harder than expected.”
Key Quotes
“Reuters reported Japan's ruling coalition has approved a tax reform plan that will cut the corporate tax rate from Apr and pledge further reductions in coming years in a bid by Prime Minister Shinzo Abe to boost profitability and bolster economic growth.”
“The pledge contained in a draft of the tax reform plan reviewed by Reuters on Tuesday would cut the overall effective corporate tax rate by 2.51 percentage points to 32.1%.”
“The plan was set to be approved by Abe's LDP n coalition partner Komeito, early on Tuesday afternoon. The cabinet is expected to approve it in early January. Abe hopes the tax cut will encourage companies to raise wages, which in turn should spur consumer spending.”
“The effective corporate tax rate is 34.6% for big firms based in Tokyo, among the highest in the major economies. The average corporate tax rate stands around 25% among OECD economies."
"Abe and his ruling coaling won a majority in snap elections this month, giving him a fresh mandate to push through his "Abenomics" stimulus policies. The economy unexpectedly slipped into recession this year after an increase in the national sales tax in April hit consumer spending much harder than expected.”