Japan enacts corporate tax rate reduction and tax-basis broadening provisions along with new surtax

Asia-Pacific Tax Newsalert

On November 30, 2011, Japan enacted the 5% corporate tax rate reduction and related tax-basis broadening provisions including the limitation on net operating loss utilization. Japan also enacted a new temporary 2.5% surtax to raise revenue for the March earthquake's reconstruction effort. This will result in approximately a 2% net reduction in the corporate tax rate for three years starting in April, 2012 and a 5% reduction thereafter.

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