One-Stop Center supports foreign-affiliated firms advancing to Shizuoka Prefecture to build plants or business bases.

Investment Guide

Q. How to calculate corporate income tax

A. Tax calculating is depend on the size, amount of income and where to invest.in case the head quarter is located in Shizuoka prefecture, the listed rate below is  example. Please refer to the website of the Ministry of Finance or Local Government detail conditions and another.

It needs for legal taxation and saving tax special tax knowledge. So it is better to rely on or consults specialists like licensed tax accountants.

One stop center for foreign companies of Shizuoka introduces specialists experienced in foreign business.

General system and calculating

(1) Example

Establish corporation in Shizuoka city and subsidiary employ 40 employees has no office in another city.

  • Capital is over 10 million yen – 100 million yen or fewer(not 100% subsidiary of major company which capital is 500 million yen or more)(*1))
  • Income of last year is 25million yen or fewer(*2)

(*1) in case 100% subsidiary, it is limited the cost reduced from income and the income tax rate of lower part has to be changed.

(*2) 「income 」is approximately [revenue -cost=net profit(profit after reduced tax)」, but there is another process of reducing cost on taxation.(carrying deficit forward)etc. It means that income of taxation is different from accounting profit.

(2) Rate (applied for the fiscal year start after 1st April 2017)
Type Out line ≦4 million 4m< ≦8m 8m<
Corporate tax Last year income×rate 19.00% 19.00% 23.20%
corporate

resident tax

Prefecture Fixed depend on the amount of capital 52,500yen
Corporate tax×rate 3.2%
City Fixed depend on the amount of capital 130,000yen
Rate depend on corporate tax rate 9.70%
Business tax Last year income×rate 3.40% 5.10% 6.70%
Local corporate special tax Last year income×corporate business tax rate×rate 43.20%
rate+fixed Last year income×rate 26.32% 28.75% 36.01%
Fixed 182,500yen
actual +fixed(*3) Last year income×rate 21.54% 22.27% 27.93%
fixed 182,500yen

(*3) It is possible to reduce business tax and local corporate special tax as next year cost in taxation. And the actual tax rate after this dealing is real rate And fixed tax has to be paid in case the last year’s account settlement was in the red.

(3) Calculation example

In case last year taxable income was 25million yen ⇒ tax will be8m yen

(thousand yen)

Type Taxation Fixed Total
~4,000 4000~8000 8000~
Corporate tax 760 760 3,978 5,498
corporate

resident tax

Prefecture 24 24 127 52.5 228
city 74 74 385 130   663
事業税 136 204 1139 1479
地方法人特別税 59 88 492 639
総合税率+均等割 1,052 1,150 6,122 182.5 8,508
実効税率+均等割 861 891 4,748 182.5 6,683

 Any other condition

(1) Pro forma standards taxation “Gaikei Hyojun Kazei”
  • All corporation capital is over 100million yen has to pay according to amount of income, added value and amount of capital.
  • The corporation capitalized over 100million yen has no corporate tax reduction(fixed 23.9%) for income part under 8million yen and needs to pay plus fixed resident tax.
Type outline・classification ≦4million yen 4< ≦8 8<
Business tax Part of value added (value added (*1)×rate) 1.20%
Part of capital(capital×rate) 0.50%
income(last year income×rate) 0.30% 0.30% 0.30%
Local corporate special tax Last year income×corporate business tax rate×rate(*2) 414.2%

(*1) wage+paid interest+paid rent fee+income of fiscal year
(*2) business year start after 1st April 2016

(2) Over tax of corporate business tax
  • In Japanese local government impose some taxes for special purposes by regulations. In Shizuoka prefecture impose plus of corporate business tax for making countermeasure against south sea trough large earthquake under the condition.
  • Object corporation is 「capital is over 100million yen」「capital is 100 million yen or fewer and income is over 30 million yen」
  • For 5 years from 1st April 2014
  • Rate imposed as over tax as income part is 0.19~36% for pro forma standards taxation corporation and 0.25~0.48% for others.
(3) Treating deficit
  • Calculated deficit of each business year is available to carry forward for 10 years under any conditions and procedures.
  • But corporation 「capital is over 100million yen」「100% subsidiary of the corporation capitalized 500 million or more」are districted to count cost for taxation.
Information
  • 2018/04/04 The number of factory attraction to Shizuoka Pref. is the top in Japan (2017servey by MITI) =Inland area is very attractive.
  • 2017/12/08 Exchange meeting at Shizuoka University of Art and Culture =Foreign students and Japanese students with companies
  • 2017/12/08 Japanese government is considering New resident status in Japan “Preparing for Foundation”
  • 2017/09/22 26th Oct, 2017 Shizuoka Inevestment Seminar in Tokyoダウンロード
  • 2017/09/12 25th Nov. Recruit meeting (Global students and Companies) will be held. please check the information afterwards

supporting
foreign-affiliated companies

One-Stop Center.

One-Stop Service Center | Shizuoka international Business Association.

Shizuoka International Business Association,
44-1 Ohtemachi, Aoi-ku, Shizuoka-shi, Shizuoka 420-0853 Japan.

Telephone:
+81-(0)54-254-5161

Facsimile:
+81-(0)54-251-1918

* Under entrustment from the Shizuoka prefectural government, the Center is operated by the Shizuoka International Business Association (SIBA).

* The cost for the operation of the Center is born by the prefectural government. Anyone can use the Center free of charge.