Nikkei Asian Review reports that the Japanese government is planning to cut the effective corporate tax rate to below 30% in fiscal 2017, starting in April. The effective corporate tax rate in Japan currently is 32.11%, this rate was set after cuts in corporate taxation this year. 

Japan's effective corporate tax rate, which includes national and local taxes is regarded as high by international standards and said to hurt Japanese business' international competitiveness. The Finance Ministry and Ministry of Internatl Affairs and Communication are busy making plans to implement the reduction in fiscal 2017.

To make up for losses in revenue, the government is looking into expansion of pro forma standard taxation (assessment by estimation on basis of size of business: gaikei hyoujun kazei) that covers loss-making companies as well. While this form of taxes is reserved for businesses capitalized at more than ¥100 mln, the question whether to expand it to SMEs as well, is put on hold, due to political sensitivities. If not included, debt-making large companies are expected to bear the brunt of the shift in tax-levies. 

Meanwhile, the Ministry of Economy, Trade and Industry (METI) is pushing for changes in the depreciation system to make up for lost revenue. As this could have an averse effect on companies' investments, cutting or ending preferential taxes for capital investments and R&D are also under consideration.

Sources:  Nikkei Asian Review, Japan to cut effective corporate tax rate below 30% in FY17 (October 11,2015)

Nikkei, 法人税、17年度に20％台　減税で国際競争力 (2015/10/11)