Japan

Paying Taxes in

Japan

Listed below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures of administrative burden in paying taxes.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in December 2010.

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To see indicator data for all economies, see the Paying Taxes page. To see how economies rank, see the Rankings page.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 online filing 155 30.0% taxable profits 17.6
Employer paid - Welfare pension insurance 0 paid jointly 8.0% gross salaries 9.1
Tokyo Metropolitan - Enterprise Tax (on income) 0 paid jointly 9.2% taxable profits 5.5
Employer paid - Health insurance 1 online filing 140 4.1% gross salaries 4.6
Inhabitants tax 1 online filing 6.6% taxable profits (plus JPY 530,000) 3.9
Employer paid - Workmen's accident compensation 0 paid jointly 1.8% gross salaries 1.8
Tokyo City - Depreciable Fixed Assets Tax 1 1.40% net value of fixed assets 1.6
Tokyo City - Fixed Assets Tax (on land and building) 1 1.4% property value 1.3
Fuel tax 1 JPY 34,140 per kiloliter fuel consumption 1
Employer paid - Employment insurance 1 online filing 1.0% gross salaries 0.9
Tokyo Metropolitan - Real Property Acquisition Tax (for building expansion) 1 4.0% 70% of building expansion value 0.8
Tokyo City - Business Premises Tax (on floor space) 1 600 yen/ per square meter floor space 0.3
Tokyo City - City Planning Tax (on land and building) 0 paid jointly with fixed assets tax 0.3% property value 0.3
Registration and license tax 1 1.0% 70% of building expansion value 0.2
Employer paid - Child allowance contribution 0 paid jointly 0.1% gross salaries 0.1
National - Stamp Tax (on contracts for land sale and building expansion) 1 fixed fee (JPY 125,000) per contract 0.1
Tokyo Metropolitan - Automobile Tax 1 fixed fee (JPY 67,100) 0
National - Automobile Tonnage Tax 1 fixed fee (JPY 44,800) 0
Tax on interest 0 20.0% interest income included in other taxes
Value added tax (VAT) 1 online filing 35 5.0% value added not included
Totals: 14 330 49.1
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