Calculation of amount of corporate tax etc. of Japan (2021)
I will explain how to calculate amount of tax relating to a company in Japan.
Taxable amount is less than 8 million yen
Taxable amount is more than 8 million yen
Assumed that taxable amount of your company in Japan is 1 million yen.
●法人税corporate tax In this case tax rate is 15% of taxable income.
So 1 million yen * 15% = 150,000 yen ①.
●地方法人税 Local corporate tax is 10.3% of amount of corporate tax.
So 150,000 yen * 10.3% = 15,450 yen ②
●法人住民税の所得割 Corporate resident tax （per income basis) is 7% of amount of corporate tax.
So 150,000 yen * 7% = 10,500 yen ③
●法人住民税の均等割 Corporate resident tax （per capital basis) is 70,000 yen. ④
(In the case capital amount is less than 10 million yen)
●法人事業税 Corporate business tax is 3.5% of taxable income
So 1 million yen * 3.5% = 35,000 yen ⑤
There was a tax named 地方法人特別税. However it was abolished.
●特別法人事業税 Special corporate business tax is 37% of amount of 法人事業税 Corporate business tax.
So 35,000 yen * 37% = 12,950 yen ⑥
In total ①+②+③+④+⑤+⑥＝ 293,900 yen.
●Gross effective tax
293,900 yen – ④ ＝ 223,900 yen.
223,900 yen / 1 million yen * 100 = 22.39%.
So gross effective tax rate of company is 22.39%.
You can download excel file here.
Calculation of corporate tax of Japan Sheet
Assumed that taxable amount of your company in Japan is 10,000,000 yen.
●法人税corporate tax
Up to 8 million yen (taxable amount), tax rate is 15% of taxable income.
So 8 million yen * 15% = 1,200,000 yen
More than 8 million yen, (taxable amount), tax rate is 23.2% of taxable income.
So 2 million yen * 23.2% = 464,000 yen
1,200,000 yen + 464,000 yen = 1,664,000 yen ①.
●地方法人税 Local corporate tax is 10.3% of amount of corporate tax.
So 1,664,000 yen yen * 10.3% = 171,392 yen ②
●法人住民税の所得割 Corporate resident tax （per income basis) is 7% of amount of corporate tax.
So 1,664,000 yen * 7% = 116,480 yen ③
●法人住民税の均等割 Corporate resident tax （per capital basis) is 70,000 yen. ④
(In the case capital amount is less than 10 million yen)
●法人事業税 Corporate business tax.
up to 4 million yen, 3.5% of taxable income
From 4 million yen to 8 million yen, 5.3% of taxable income
From 8 million yen, 7% of taxable income
So
4 million yen * 3.5% = 140,000 yen
4 million yen * 5.3% = 212,000 yen
2 million yen * 7% = 140,000 yen
Subtotal 492,000 yen ⑤
There was a tax named 地方法人特別税. However it was abolished.
●特別法人事業税 Special corporate business tax is 37% of amount of 法人事業税 Corporate business tax.
So 492,000 yen yen * 37% = 182,040 yen ⑥
In total ①+②+③+④+⑤+⑥＝ 2,695,912 yen.
●Gross effective tax
2,695,912 yen – ④ ＝ 2,625,912 yen.
2,625,912 yen / 10 million yen * 100 = 26.2%.
So gross effective tax rate of company is 26.2%.
You can download excel file here.
Calculation of corporate tax of Japan Sheet
