Ｑ. Japanese tax system
Ａ. There are national tax and local tax (prefecture and city) in Japan.
From the object for taxation there are several taxes in Japan below.
- Imposed taxes on income of corporation and individual have several kinds below
a National tax …Income of individual or corporation
b Local tax …・Prefecture resident tax(individual , corporation)
・City resident tax (individual, corporation)
・Business tax(individual, corporation)
- Rate is differ depend on amount of income, scale of company(capital）,place of investment etc.
- To resolve the problem of fairness or double taxation, the object will be sorted depend on types of investment.
|Representative office||Non taxation|
|Branch office||Taxed for income occurred in Japan in principle|
|Taxed for all income no matter where it occurred
In case dividing profits to parent company it is taxed a part of dividend
＊ It needs to be careful because there may be taxed case depend on the kind of business.
Tax for property
- “Koteishisan zei” Taxed by city for fixed assets of corporation or individual（land, building, machine and equipment etc. for business）
- Rate of tax is different from city（1.4%）
- “Shohizei” =value added tax :Taxed for service and commodity almost all things. Except for several things （land, transfer of security, interest etc. and related to medical and welfare ）
- Rate is 10 % f oodstuff 8 exclude alc o ho lic drink
Tax for business
- “Inshizei” =stamp tax :Taxed for business and contract.(differ from kind of contract and amount. (Ex. 400yen for contract agreement amount one million yen)
- “Fudosan shutokuzei” :tax for real estate acquisition（3-4%）
National tax 「tax for tobacco」「tax for alcoholic」「tax for oil and gas」
Local tax [tax for town plan」「tax for car」etc.
Please refer to website of the ministry of finance and local government.