Corporate Tax

Japan helps US motion for international minimal tax charge

Politics Lifestyle April 6, 2021

Tokyo, April 6 (Jiji Press) – Japanese Treasury Secretary Taro Aso on Tuesday welcomed US Treasury Secretary Janet Yellen’s remarks on her country’s move to achieve a global minimum corporate tax rate.

The move in the US is “a good momentum to stop the race for lower corporate tax rates,” Aso said at a press conference.

Aso said the move could also help fuel the Organization for Economic Cooperation and Development’s talks on international tax rules to block tax avoidance by large information technology companies.

In an online speech on Monday, Yellen suggested calling for the introduction of a global corporate tax rate on a conference call between the group of 20 finance ministers and central bank governors scheduled for Wednesday.

Japan’s effective corporate tax rate is relatively high in the group of seven advanced economies, while the debt-to-GDP ratio is estimated at 266.2 percent for 2020, the worst among G7 members.

[Copyright The Jiji Press, Ltd.]

Jiji Press

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