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.
Taxes
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).
Tax Rates on Income
The highest effective tax rate is 33.59% and the lowest tax rate is 25.99% for the company whose share capital is JPY 100 Million or less and located in Kawasaki. (Information as of 2020)
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 | |||
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).
Calculation of Consumption Tax dues
The Consumption Tax rate is 10%, 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.
Consumption Tax Exempt Enterprises
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.
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
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.