Corporate Tax in Japan
- Tax Base For Resident and Foreign Companies
- Resident companies are taxed on their worldwide income; non-resident companies are taxed only on Japanese-source income. A company that has its principal or main office in Japan is considered to be resident. For additional information.
|Corporation tax||30% of the profit for companies of more than 100 million JPY|
|Corporation tax for companies under the JPY 100 millions limit||22%|
|Local taxes||Corporation inhabitants tax and corporation enterprise tax vary according to the locality|
|Effective taxation||41% all inclusive (46% in the Tokyo metropolitan region)|
- Tax Rate For Foreign Companies
- Taxed at the corporate tax rate
- Capital Gains Taxation
Taxed at the corporate tax rate.
Capital gains tax on land transfers is subject to a specific method of calculation.
- Main Allowable Deductions and Tax Credit
- Bad debt, repairs, natural disasters, charitable donation, R&D expenses, etc.
- Other Corporate Taxes
- Stamp tax, registration and license tax.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year||14.0||14.2||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||355.0||199.3||187.0||215.0|
|Total Share of Taxes (% of Profit)||48.6||43.0||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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