Japan Corporate Tax (Hojinzei 法人税) Calculator
Compute Japanese effective corporate tax liabilities (法定実効税率), National Corporation Tax (15% SME tier), Local Corporation Tax, Enterprise Tax (事業税), and municipal per capita levies in JPY.
Corporate Fiscal Parameters
Total Statutory Corporate Taxes Payable
¥2,450,000
National Corporation Tax (法人税)
¥1,664,000
Local Taxes (住民税・事業税・均等割)
¥786,000
Statutory Corporate Tax Breakdown
| Statutory Tax Line | Legal Formula | Amount (JPY) |
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Japanese Corporate Taxation Framework
1. National vs Local Corporate Levies
Corporate tax in Japan is bifurcated into national and regional burdens:
- National Corporation Tax: 15% on the first ¥8M for SMEs; 23.20% on the remainder.
- Local Corporation Tax: Exactly 10.3% of the National Corporation Tax.
- Corporate Inhabitant Tax: Profit-based levy (7.0% of national tax) PLUS fixed Per Capita Levy (¥70,000 minimum).
- Enterprise Tax: Deductible against future corporate income in the year paid.
2. Tax Incentives & Deductibility
Corporate Enterprise Tax possesses a unique statutory characteristic: unlike Corporation Tax and Inhabitant Tax, Enterprise Tax paid to the prefecture is recognized tax-deductible expense in the subsequent fiscal year.
This mutual deductibility reduces the theoretical combined rate (~34%) to the recognized statutory effective corporate tax rate (実効税率) of approximately 29.74%.
Frequently Asked Questions
What is the standard effective corporate tax rate (実効税率) in Japan? ▼
Japan's standard effective corporate tax rate (法定実効税率) is approximately 29.74% to 30.62% for standard corporations in Tokyo. For small-and-medium enterprises (SMEs with capital ≤ ¥100M), taxable income up to ¥8,000,000 enjoys reduced rates, bringing their effective tax burden down to approximately 21% to 23%.
What reduced Corporation Tax (法人税) rate applies to SMEs up to ¥8 million? ▼
Under the Corporation Tax Act, companies with capital of ¥100,000,000 or less pay a reduced national corporation tax rate of 15% on the first ¥8,000,000 of taxable annual income (reduced from the permanent statutory 19% rate under tax incentive laws). Taxable income exceeding ¥8,000,000 is taxed at the standard 23.20% rate.
What is the Corporate Inhabitant Tax Per Capita Levy (均等割 Kintouwari)? ▼
Even if a corporation generates zero profit or operates at a fiscal loss, it must pay the mandatory Per Capita Levy (均等割) to prefectural and municipal governments. In Tokyo's 23 special wards, an SME with capital of ¥10,000,000 or less and 50 or fewer employees pays a flat minimum of ¥70,000 per year.
What taxes constitute the Japanese corporate tax package? ▼
A corporation in Japan pays four main taxes on its fiscal profit: (1) National Corporation Tax (法人税 15%/23.2%), (2) Local Corporation Tax (地方法人税 10.3% of Corporation Tax), (3) Corporate Enterprise Tax & Special Enterprise Tax (法人事業税・特別法人事業税 ~3.5%–7%), and (4) Corporate Inhabitant Tax (法人住民税, including profit-based and fixed per capita levies).
Can business losses be carried forward to offset future corporate taxes? ▼
Yes. In Japan, net operating losses (欠損金の繰越控除) can be carried forward for up to 10 fiscal years. For qualifying SMEs (capital ≤ ¥100M), 100% of current year taxable income can be offset against past losses. Large corporations with capital exceeding ¥100M are restricted to offsetting up to 50% of current taxable income.
Engr. Muhammad Shahzad
Lead Systems Architect & Statutory Specialist15+ years of specialized technical architecture experience in statutory tax modeling, financial calculation engines, and cross-border regulatory compliance. All Japanese tax and social security calculations are strictly mapped to statutory mandates from the National Tax Agency (国税庁), Ministry of Health, Labour and Welfare (厚生労働省), and Japan Pension Service (日本年金機構).
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Japanese National Tax Agency & Social Insurance System Lead
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.