Enterprise or Business tax (Jigyōzei) is a tax levied by the prefecture where your business operates. The tax is levied on taxable corporate income base and levied on value-added and capital appropriate based upon the pro-forma business size such as the number of employees and amount of capital if larger that 100 million JPY. If a company is involved in electricity/gas supply or insurance business the tax is impose on the adjusted gross revenue.

Tokyo Metropolitan Government offers a detailed explanation regarding business tax. Tax payers must file a return and pay business tax together with special corporate enterprise tax and inhabitant tax on corporations.


  • Special local corporation tax, which was a temporary fiscal measure in place since 2008 was abolished after October 1, 2019 and replaced by a new Special Corporate Enterprise Tax. This new tax is permanent and will allocated to local governments in order to decrease the gap in tax revenues between urban and rural areas
  • Business tax and Special corporate enterprise tax are tax deductible expense when tax returns for such taxes as file.

Enterprise tax on income

Taxable base

(taxable income)

Standard tax rates



< JPY 4 million


JPY 4-8 million


> JPY 8 million


Special Business tax

Stated capital

Taxable base

Tax rates



Before 1-10-2019

On and after 1-10-2019

> JPY 100 mln

Taxable income
x Standard rate of business tax



< JPY 100 mln

Taxable income
x Standard rate of business tax



Size-based business tax (Stated capital > 100 mln)


Standard Tax rates

Added value component


Capital component


Source: KPMG

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