A Study of Fringe Benefits Taxation in Japan : Characterisics and Proposals for Reform
| Project/Area Number |
04630056
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | WASEDA UNIVERSITY (1993)
Nagasaki University (1992) |
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Principal Investigator |
BABA Yoshihisa WASEDA UNIVERSITY, DEPARTMENT OF POLITICS AND ECONOMICS, PROFESSOR, 政治経済学部, 教授 (80148022)
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| Project Period (FY) |
1992 – 1993
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| Project Status |
Completed (Fiscal Year 1993)
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| Budget Amount *help |
¥1,400,000 (Direct Cost: ¥1,400,000)
Fiscal Year 1993: ¥600,000 (Direct Cost: ¥600,000)
Fiscal Year 1992: ¥800,000 (Direct Cost: ¥800,000)
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| Keywords | Fringe Benefits / In-Kind Compensation / Compensation Package Decision Model / The Neutrality Of Taxation / Partial Deductivility Of The Costs / The effect Of Income Tax Savings / The Australian Rule / Reguratory Tax / 費用控除の部分否定 / 社宅 / 最適課税ルール / 被用者便益 / 包括的所得税 / 労働力の固定化 |
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| Research Abstract |
1 We obtained the following results by applying a symple compensation package decision model of a firm to fringe benefits taxation problems in Japan. (1) Japanese tax system gives firms implicit subsidies which consist of income tax and social security contributions savings from fringe benefits. (2) We derived the neutral tax rule to eliminate the distortion by imcome tax and social security contributions. This rule is partial deductiobility of the cost of fringe benefits against corporate income tax. (3) The Australian rule and the no deductbility rule might work as reguratory fringe benefits tax, given the levels of individual income tax, social security contributions and corporate income tax in Japan. (4) The income tax rule which includes fringe benefits in taxable income is short of administrative feasibility, and does not eliminate the social security contribution savings. (5) The optimal deductible rate of our tax rule is determined by income tax rate, social security contribution rate and corporate income rate only, if finges do not benefit the employer.
2 The results is based on simple decision model. We have to investigate more comprehensive model that includes portfolio selection of a firm.
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Report
(3 results)
Research Products
(10 results)
