Calculation of corporation tax in Japan
In the case the amount of pretax profit ( zeibikimae Junrieki = 税引前純利益 ) is 1 million yen.
Corporation tax ( Hojin zei ): 1 million yen × 15% = 150,000 yen
Corporate resident tax ( Hojin Juminzei ) : 150,000 yen × 17.3% + 70,000 yen = 95,950 yen
Business tax ( Jigyo zei ): 1 million yen × 2.7% = 27000 yen.
Special local corporation tax ( chiho hojin tokubetsu zei ) : 27000 yen × 81% = 21,870 yen
Total 294,820 yen
So, about 30% of pretax profit will be paid to tax.
In there are any profits in the company, only 70,000 yen is levied per a year.
