Gary Thomas, a partner in the Tokyo office of White & Case LLP, testified today before the U.S. House Ways and Means Committee about Japan's international tax policy and how the country's tax reform efforts helped companies better compete in the global market and create jobs. Among the issues he discussed were:
(1) The recent adoption of Japan's foreign dividend exemption system and the features of this system
(2) Insight into why Japan adopted this system and abandoned its prior approach of taxing foreign subsidiary dividends while granting an indirect foreign tax credit
"Japan has used international tax reform to help its companies compete in the global market, revitalize its economy and increase employment opportunities," said Thomas in his testimony. "I have seen firsthand how nimbly America's competitors can operate within their territorial tax systems, at the same time that US corporations struggle to deal with the very complicated and burdensome US worldwide tax regime. Japan’s experience can be instructive for the US as the country considers fundamental international tax reform."
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