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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.
Notes:
- 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
Companies with stated capital > JPY 100 mln
Taxable base(taxable income) | Standard tax rates | |
1-4-2016- 30-9-20119 | 1-10-2019 - | |
< JPY 4 million | 0.3% | 0.4% |
JPY 4-8 million | 0.5% | 0.7% |
> JPY 8 million | 0.7% | 1.0% |
Companies with stated capital >< JPY 100 mln
Taxable base(taxable income) | Standard tax rates | |
1-4-2016- 30-9-20119 | 1-10-2019 - | |
< JPY 4 million | 3.4% | 3.5% |
JPY 4-8 million | 5.1% | 5.3% |
> JPY 8 million | 6.7% | 7.0% |
Special Business tax
Stated capital | Taxable base | Tax rates | |
Before 1-10-2019 | On and after 1-10-2019 | ||
> JPY 100 mln | Taxable income | - | 260% |
< JPY 100 mln | Taxable income | - | 37% |
Size-based business tax (Stated capital > 100 mln)
Components | Standard Tax rates |
Added value component | 12.% |
Capital component | 0.5% |