Tax matters

  1. Submission of reports/applications after Incorporation
    After the incorporation, it is required to submit reports/applications to National Tax Office, Prefectural Tax Office and Municipal Tax office.

  2. Taxes

    1.  Corporate Taxes
      The company basically has to file the final Corporate Tax returns within 2 months after the end of the fiscal year (extension can be applied).

        1.  Tax Rates on Income
          The highest effective tax rate is 34.252% and the lowest tax rate is 21.421% for the company whose share capital is JPY 100 Million or less and located in Kawasaki.
        2. Per-capita Inhabitants Tax (for Kawasaki City)
      Share Capital plus

      Additional paid-in capital

      Number of employees Per capita inhabitants tax
      Prefectural Municipal Total
      From To
      more than 5,000,000,000 more than 50 800,000 3,000,000 3,800,000
      50 or less 410,000 1,210,000
      1,000,000,001 to 5,000,000,000 more than 50 540,000 1,750,000 2,290,000
      50 or less 410,000 950,000
      100,000,001 to 1,000,000,000 more than 50 130,000 400,000 530,000
      50 or less 160,000 290,000
      10,000,001 to 100,000,000 more than 50 50,000 150,000 200,000
      50 or less 130,000 180,000
      10,000,000 or less. more than 50 20,000 120,000 140,000
      50 or less 50,000 70,000
    2. Consumption Tax
      Taxable enterprise has to file the final Consumption Tax return within 2 months after the end of the taxable period (extension cannot be applied).

      1. Calculation of Consumption Tax dues
        The Consumption Tax rate is 8%, and the basic formula to calculate the Consumption Tax due is as follows.Tax Due = Consumption Tax on Sales - Consumption Tax on Purchases(note) Enterprise whose taxable sales during the base period (two business years prior to the current business year) is 50 million yen or less, may choose “Simplified Tax System” which deducts the Consumption Tax on sales multiplied by a certain rate as Consumption tax on purchases.
      2. Consumption Tax Exempt Enterprises
        1. Where the amount of taxable sales of an enterprise in the base period is 10,000,000 Yen or less, the enterprise will be basically exempt from consumption tax during the taxable period.
        2. Corporations are basically exempt from consumption tax during their first and second business years, because there are no taxable sales for the base periods. Where a corporation is established with its capital of 10,000,000 Yen or more, it is not exempt from consumption tax during its first and second business year
    3. Other taxes
      There are the following taxes in Japan.
      – Individual Income Tax
      – Fixed Asset Tax
      – Property Tax
      – Registration and License Taxes
      (Commerce Registration, Real Property registration)
      – Stamp Tax
      – etc.