Japanese Companies Brace for Global Minimum Tax, Tax Hike Plans

Japanese multinational companies are facing major changes this year: continuing to prepare for the OECD-led 15% global minimum tax and navigating a proposed increase in Japan’s corporate tax rate.

The global minimum tax, agreed on by nearly 140 countries, is meant to start in 2024. It will require significantly more staff to prepare paperwork for scores of Japanese multinational corporations, more than 900 of which have revenues in excess of the 750 million euro ($814 million) threshold at which the tax is triggered. Separately, the bill for new defense spending funded with a corporate tax ...