The Global Tax Chronicle - August 2023

The International Tax Services (ITS) team at BDO in India is pleased to bring to you ‘The Global Tax Chronicle’ - A quarterly summary of global tax trends and compliances. Each edition of the chronicle delivers an international perspective on critical tax developments across the domains of direct & indirect taxation and transfer pricing.

A unique section spotlights a different country in each edition, elaborating on significant tax regulations in that jurisdiction. The publication will also be supplemented with a compliance calendar highlighting key tax compliances worldwide, from a business perspective.

Edition 12 Country in focus: Japan

With a formidable nominal GDP of USD 5.1 trillion in 2022, Japan holds its ground as the world's third-largest economy, marking a significant milestone in global economic prowess. Driven by a dynamic service sector that contributes over 70% of its GDP and bolstered by a substantial manufacturing segment, Japan's prominence as a key exporter of automobiles, electronics, and machinery remains unshaken.

Anchored by a 23.2% standard corporate tax rate, accompanied by local and special enterprise taxes, Japan's attractiveness is amplified by its technological acumen, skilled workforce, and inviting governmental incentives. This convergence paints a compelling landscape for global enterprises seeking productive grounds for innovation and expansion.

In this edition of the Global Tax Chronicle, we delve into the implications of ESG principles across each of the tax laws viz. corporate, indirect tax, and transfer pricing.