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 2020）
| Type | Out line | ≦4 million | 4m＜ ≦8m | 8m＜ | |
|---|---|---|---|---|---|
| Corporate tax | Last year income×rate | 15.00％ | 15.00％ | 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 | 6.00％ | ||||
| Business tax | Last year income×rate | 3.50％ | 5.30％ | 7.00％ | |
| Local corporate special tax | Last year income×corporate business tax rate×rate | 37.00％ | |||
| rate＋fixed | Last year income×rate | 20.85％ | 23.31％ | 25.64％ | |
| Fixed | 182,500yen | ||||
| actual ＋fixed(＊3) | Last year income×rate | 19.89％ | 21.73％ | 23.40％ | |
| 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 be 6.3 m yen
(thousand yen)
| Type | Taxation | Fixed | Total | |||
|---|---|---|---|---|---|---|
| ～4,000 | 4000～8000 | 8000～ | ||||
| Corporate tax | 600 | 600 | 2,550 | 3,750 | ||
| corporate resident tax | Prefecture | 6 | 6 | 26 | 52.5 | 90.5 |
| city | 36 | 36 | 153 | 130 | 355 | |
| 事業税 | 140 | 212 | 1,190 | 1,542 | ||
| 地方法人特別税 | 52 | 78 | 440 | 570 | ||
| 総合税率＋均等割 | 834 | 932 | 4,359 | 182.5 | 6307 | |
| 実効税率＋均等割 | 796 | 869 | 3,977 | 182.5 | 5,825 | |
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） | colspan=”3″>0.50％ | |||
| income（last year income×rate） | 0.40％ | 0.70％ | 1.00％ | |
| Local corporate special tax | Last year income×corporate business tax rate×rate(*2) | 260.0％ | ||
(*1) wage＋paid interest＋paid rent fee＋income of fiscal year
(*2) business year start after 1st April 2020
(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 business until 31st March 2026
- Rate imposed as over tax as income part is 0.095～0.18％ 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.
