Even though Japan is know as a highly centralized state, local administrations have some discretion in setting their own taxation system. However, Japanese Law does not give broad possibilities of taxation for the local governments, they are only able to set a rate between a minimum and a maximum fixed by national law.

The Local or Corporate Enterprise Tax is a local tax levied against profit after subtracting expenses (they will not be levied when loss is incurred) and through self-assessment. It works along similar lines as national corporate taxation.

Tax base

Paid-in capital of JPY 100 million or less (≈ EUR 700 000) i.e. SMEs

Standard rate

Maximum rate

Taxable income up to JPY 4 million in a year (≈ EUR 28 000)

2.7%

2.95%

Excess over JPY 4 million (≈ EUR 28 000) and up to JPY 8 million in a year (≈ EUR 50 000)

4%

4.365%

Excess over JPY 8 million (≈ EUR 50 000)

5.3%

5.78%

Offices in at least three different prefectures and capital of at least JPY 10 million (≈ EUR 70 000): only rate applicable

5.3%

5.78%

EU-Japan Centre News

More
Call for tender to outsource the services of the “Japan Tax and Public Procurement Helpdesk in...
The EU-Japan Centre in Tokyo is regularly publishing "Industry and Policy News" from various...
30 YEARS OF INDUSTRIAL COOPERATION - RESPONDING TO THE CHANGING NEEDS For the past three decades,...

Events

More
Europe
14/11/2017
With a view to helping raise industrial competitiveness, the EU-Japan Centre has organised in-depth visits to world class European plants since 2013. During the visits, participants will learn about...
Online
01/12/2017
An 8-part lecture series giving a sound introduction to the practical concepts of applied lean. The EU-Japan Centre Lean Masterclass consisted of lectures, by Professor Richard Keegan, focussing on "...

Library

More
November 2017 Japanese Industry and Policy News Topics covered in the November issue: LEGISLATION...
EU-Japan Newsletter, Issue #60 December 2017. The Centre is pleased to...
Brief Japan Industrial Reports ADDITIONAL REPORTS AVAILABLE on www....
October 2017 Japanese Industry and Policy News Topics covered in the October issue: LEGISLATION...