Japan's 2014 Tax Changes Go Into Effect

The changes to the tax law announced in October last year were passed by the Diet on March 20th 2014. Main changes apply April 1st 2014, and include:

• Consumption tax increased from 5% to 8% until September 30th 2015, and a possible increase to 10% after that
• Abolishment of the Special Reconstruction Corporate Tax (10%), which lowers the effective corporate tax rate to 35.64%
• The tax credit for salary growth program is extended to March 31st 2018, and the qualifying criteria are relaxed - t…