Japan's Rankings
Overall Rank2857.06
Corporate Taxes3632.8
Individual Taxes3250.32
Consumption Taxes395.35
Property Taxes3048.16
International Tax Rules2170.84

Japan ranks 28th overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


  • Japan has a low VAT rate of 8 percent applied to a broad base.
  • Corporate and consumption taxes are less complex than they are on average in the OECD.
  • Japan's personal income tax rate on dividends is 20.3 percent, below the OECD average of 23.8 percent.


  • Japan has poor cost recovery provisions for business investments in machinery and buildings.
  • Japan has a hybrid international tax system with a 95 percent exemption for foreign dividends and no exemption for foreign capital gains.
  • Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.

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