Related

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

Taxable base

(taxable income)

Standard tax rates

 

1/4/2021-31/3/2025

< JPY 4 million

0.4%

JPY 4-8 million

0.7%

> JPY 8 million

1.0%

Special Business tax

Stated capital

Taxable base

Tax rates

 

 

Before 1-10-2019

On and after 1-10-2019

> JPY 100 mln

Taxable income
x Standard rate of business tax

-

260%

< JPY 100 mln

Taxable income
x Standard rate of business tax

-

37%

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

Components

Standard Tax rates

Added value component

1.2%

Capital component

0.5%

Source: KPMG

EU-Japan Centre's News

More
Japan Science and Technology Agency (JST) has pre-announced a call for applications for the 2024…
The Horizon Europe call for EU-Japan collaboration projects (Topic: HORIZON-JU-SNS-2024-STREAM-B-01…
The EU-Japan Centre’s office in Tokyo is regularly publishing "Industry and Policy News”. By…
The latest issue of the EU-Japan NEWS, the EU-Japan Centre's quarterly newsletter is now available…
The European Institute of Innovation & Technology invites you to apply to their one-of-a-kind,…
The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the…

Events

More
Online and in Japan
17/06/2024 - 12/07/2024
17-21 June 2024, → mandatory week online (open to SMEs and large companies) 08-12 July 2024, → optional week in Japan (open only to SMEs who have completed the first online week) PROGRAMME…
Japan
01/08/2024 - 31/03/2025
  The organization of the Vulcanus Programme is pending reception of a grant by the EU-Japan Centre for Industrial Cooperation for the Japanese fiscal year 2024-2025: Please note that this call is…
Subscribe to
our newsletters

The EU-Japan Centre currently produces 5 newsletters :

  • EU-Japan NEWS - our flagship newsletter covering the Centre's support services, information about EU (or Member States) - Japan cooperation
  • Japanese Industry and Policy News
  • “About Japan” e-News (Only available for EU companies / EU organisations)
  • Japan Tax and Public Procurement Weekly Tender Digest (Only available for EU companies / EU organisations)
  • Tech Transfer Helpdesk Newsletter
Subscribe