Japan Withholding of Special Reconstruction Income Tax From January 1st 2013 To December 31st 2037

(Purpose)
The objective of this note is to assist customers of PeopleSoft Enterprise to understand the implications of the Japan Withholding of Special Reconstruction Income Tax. The necessary steps to accommodate this update are provided in this note.

Japan Withholding of Special Reconstruction Income Tax:
On November 30, 2011, Japan Diet approved the bill for taking special Measures to secure the financial resources for reconstruction after the Great East Japan Earthquake. There is an increase in income tax rate called "Special Reconstruction Income Tax" and the regulation will be in force from 1-January-2013 to 31-December-2037 for 25 years where the tax rate of 2.1% will be imposed on the standard National Income tax.