Blog

15
apr

Japan reduced corporate tax, but then quickly added a surtax

From 30% to 25.5%

For fiscal years beginning on or after 1 April 2012, corporate tax rate was reduced from 30% to 25.5% and applies to ordinary corporations with share capital exceeding JPY 100 million.

However, 10% surtax is imposed for three years for fiscal years beginning on or after 1 April 2012.

Therefore, the national corporate tax rate will be 28.05% for the first three years, and 25.5% thereafter.

The 18% special tax rate available to small- and medium-sized enterprises (SMEs) for the first JPY 8 million of taxable income is reduced to 15% (also subject to the new 10% surtax) for fiscal periods starting between 1 April 2012 and 31 March 2015.

Thus, the national corporate tax rate for SMEs will be 16.5% for the above periods for the first JPY 8 million of income.

source:deloitte.com