Tax rate of corporate tax
- Corporate and local corporation tax, corporate inhabitant tax, and enterprise tax
Corporate tax consists of "corporation tax" and "local corporation tax" (local corporation tax is a tax to be paid to the national government, and the amount of tax to be paid is calculated on the corporate tax return).
Local taxes include "corporate citizens' tax," "corporate prefectural residents' tax," and enterprise tax.
Corporate tax rates (national tax)
Corporate tax rate For corporations with capital exceeding 100 million yen Taxable income x 23.2% + corporate tax x 10.3
For corporations with capital of 100 million yen or less The portion of annual income of 8 million yen or less: 15% The portion of annual income exceeding 8 million yen: 23.2
Effective tax rate on income including local taxes (for corporations with capital exceeding ¥100 million): 30.62
- Corporate enterprise tax (for capital exceeding ¥100 million)
The corporate enterprise tax consists of the following three components
The corporate enterprise tax consists of the following three components: - Income tax rate
The tax is imposed on income.
Capitalization tax is levied on the amount of capital.
Special corporate enterprise tax is imposed on the amount of taxable income.
Tax rate (for capital over 100 million yen and income over 25 million yen)
Taxable income x 1% (for capital over 100 million yen and income over 25 million yen)
Value-added tax (profit/loss for a single year + salary + rent + interest) x 1.26
Capital discount: Capital x 0.525%.
Special corporate enterprise tax
- Equalization (Corporate Citizen's Tax, Corporate Prefectural Citizen's Tax)
Even if a company has a net operating loss, a flat-rate tax called "per capita tax" is imposed on the company. The amount varies depending on the capital and number of employees. The minimum amount is 70,000 yen for companies with capital of 10 million yen or less and 50 employees or less.
【Trial Calculation
The following is a model case based on an effective tax rate of 30.62% for large corporations in Tokyo with capital of 200 million yen and taxable income of 10 million yen and only one office in the 23 wards of Tokyo. (The tax amount will vary depending on the company's situation.)
Tax based on effective tax rate 10,000,000 x 30.62%=3,062,000
Equalization 1,800,000
Capital discount 200,000,000 x 0.525%=1,050,000
Value-added discount (single year profit/loss) 10,000,000 x 1.26%=126,000 (the amount of tax depends on the company's general situation)
Estimated total corporate tax 6,038,000 yen
