Jap Japan Country Analysis

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Running head: JAPAN COUNTRY ANALYSIS 1
JAPAN COUNTRY ANALYSIS 6

Japan Country Analysis
Hieu Le
Columbia Southern University

Japan Country Analysis Regarding corporate tax system that Multinational Enterprises (MNEs) have to obligate to fulfill their tax responsibility to a country that MNEs conducts their business, also they must pay their tax obligation to their home country as well. Thus, tax structure, tax rate, and the tax system are the essential aspects for MNEs. Thus business organizations need to understand how structural taxation and laws of the particular that
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Majority tax concepts advise MNE to fulfill tax rules, pay their fair shares, corporation?s tax rate, and taxation identity.
Speaking about Japan, a nation locates in Northeast of Asia, with a population of 125 million people approximately (Central Intelligence Agency, 2015). A numerous population of Japan is a great source a for MNEs to explore and invest in this country in order to obtain magnificent profits and grow their business for a long term. However, companies need to examine the structural taxation of Japan and understand the tax system thoroughly prior to any investment operation. In fact, MNEs are all companies which are not domestic firms. A MNE resides its headquarter Japan is a MNE, although the firm conducts business in Japan. MNEs are subject to enterprise tax on Japanese earn income which also are subject to either corporation tax or final withholding tax on Japanese source income. Depending on the kind of earnings and the process of the MNE?s operation in Japan. MNEs are not subject to tax on liquidation earning.
According to Moffett et. al, (2015), Japan is one of the countries in the world that have the highest corporation?s tax rate of 40% (Moffett, et. al, 2015). This high tax rate is the most unfavorable element for MNEs that conduct their business in Japan, particular Coca-Cola. High tax rate is not only impact significantly to
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