Another better way of the corporate tax reform in Japan : close but not the same as the value-added tax
説明
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This paper examines the impact of Japan’s corporate tax reform using a dynamic general equilibrium model. The government reduced the effective corporate income tax rate from 34.62% to 29.74% between 2014 and 2018, while increasing rate of the value-added component of Enterprise Tax in 2016. Its tax base, primarily based on labor cost, differs from value-added tax (VAT). We assess the shift from corporate income to labor cost as a tax base and compare the value-added component of Enterprise Tax to VAT in terms of social welfare and corporate value. Our analysis shows that despite increased tax rate of the value-added component, both corporate value and social welfare improved post-reform. Additionally, substituting the VAT rate for higher rate of the value-added component yields even greater improvements.
収録刊行物
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- Keio economic studies
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Keio economic studies 56 3-21, 2023
Keio Economic Society, Keio University
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詳細情報 詳細情報について
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- CRID
- 1050017611524687360
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- ISSN
- 00229709
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- 本文言語コード
- en
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- 資料種別
- journal article
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- データソース種別
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- IRDB