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Japan Plans to Double Consumption Tax Rate by 2015 Japan has proposed to introduce new reduced Consumption Tax (VAT) Rate for basic goods, in an effort to assuage the impact of the planned tax rate to 10% by 2015. The increase in the rate will help boost economic growth, generate significant revenue and strengthen and sustain social security benefits, reports Nair & Co.’s International Tax Team.

The new reduced Consumption Tax rate is being introduced in two phases:

Consumption Tax Rate 12% Phase 2: 10%

10% 8%

Phase 1: 8%

Current: 5% 6% 4% 2% 0% Upto 1 Apr 2014

From 1 Apr 2014 -

From 1 Oct 2015 -

In order to economically meet the tax compliance obligations in the future, Nair & Co. advises companies operating in Japan to cautiously plan their business processes and financial system competence.

For more information about international tax laws, doing business overseas or to learn more about our Nair & Co.’s International Expansion Services please contact us.

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About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867


Japan Plans to Double Consumption Tax Rate by 2015