Japan and Mexico Economic System

...

¬ High capita GDP and standard of life.

¬ Few formal restrictions

¬ Free trade agreement with Australia

¬ Free trade agreements with over 40 countries including North Free Trade Agreement

¬ Open economy

RISKS

¬ Budget deficits

¬ Market regulations

¬ Sluggish export growth

¬ Tied to American Economy

¬ Security risks

¬ Low growth

COSTS

¬ Structural reforms

¬ Accommodative monetary policy

¬ Business friendly policies

¬ Performs well politically and legally

APPENDIX 1

Brackets of taxable income

Up to

4 million yen (*)

Over

4 million yen to 8 million yen (*)

Over

8 million yen

1. Corporate tax

15.00%

15.00%

23.90%

2. Local corporate tax

0.66%

0.66%

1.052%

3. Inhabitant tax a. Prefectural

b. Municipal

0.48% 1.45%

0.48% 1.45%

0.77% 2.32%

4. Enterprise tax

3.40%

5.1%

6.70%

5. Special local corporate tax

1.46%

2.20%

2.89%

Total tax rate

22.45%

24.89%

37.63%

Effective tax rate

21.42%

23.20%

34.33%

INVESTING IN ASIA 2015 , JAPAN (UNICTAD,2016)

REFERENCE LIST

Bâlgăr, C., & Drăgoi, A. (2014). THE ROLE OF FDI IN REVITALIZING JAPAN’S ECONOMY. 9(3), 161-171.

Japan In-depth PESTLE insights. (2015). Japan Country Profile, 1-80.

COUNTRY REPORTS: JAPAN. (2016). Japan Country Monitor, 1-19.

Country Reports: Mexico. (2016). Mexico Country Monitor, 1-21.

Del Toro, R., Cuéllar, D., & Córdova, D. (2004). Investing in Mexico today. International Tax Review, 27.

Mexico. (2015). Latin America Monitor: Mexico Monitor, 32(12), 2-7.

Chapter 2: Economic Outlook. (2012). Mexico Business Forecast Report, (1), 13-27.

Unctad.org. Retrieved 22 April 2016, from

http://unctad.org/en/PublicationsLibrary/wir2015_en.pdf?lien_externe_oui=Continue

Foreign investment in Japan - Santandertrade.com. (2016). En.santandertrade.com. Retrieved 22 April 2016, from https://en.santandertrade.com/establish-overseas/japan/foreign-investment