2010 June 23 - 29 [
FINANCE]
‘High’ corporate tax is not the reason for their moves overseas
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June 24, 2010
The ruling Democratic Party of Japan as well as the Japan Business Federation are increasing their call for a corporate tax reduction in addition to a raise in the consumption tax rate. Although the government blames the supposedly high rate of corporate taxes for forcing Japanese companies to relocate to foreign countries, Akahata’s research has found out that this argument is groundless.
In its “Industrial Structure Vision 2010” published on June 1, the Ministry of Economy, Trade and Industry argued that because of Japan’s high corporate tax rate Japanese companies are moving abroad, citing the overseas relocation of Nissan, Fujitsu, Sunstar, and Sharp as examples.
In response to Akahata’s inquiry, however, Nissan Motor answered that its sole reason for transferring the production of new models to Thailand was for the maintenance of its global competitiveness.
Sunstar’s PR department said that it has relocated its head office to Switzerland in order to obtain global human resources rather than to take advantage of the nation’s low corporate tax.
Fujitsu, which has announced that it will jointly develop a supercomputer with the Agency for Science, Technology, and Research of Singapore, told Akahata that the decision is not connected with the low tax obligation there.
Sharp answered that its establishment of a center for development of liquid crystal panels in China is aimed at developing appropriate consumer goods for the Chinese market.
- Akahata, June 24, 2010
