Japan

Ease of Doing Business in

Japan

This page summarizes Doing Business 2013 data for Japan. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region OECD high income
Income Category High income
Population 127,817,277
GNI Per Capita (US$) 45,180
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
24 20 down -4

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
77.8 77.9 down -0.1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 114 109 up -5
Dealing with Construction Permits 72 68 up -4
Getting Electricity 27 28 up 1
Registering Property 64 59 up -5
Getting Credit 23 23 No change
Protecting Investors 19 17 up -2
Paying Taxes 127 123 up -4
Trading Across Borders 19 19 No change
Enforcing Contracts 35 34 up -1
Resolving Insolvency 1 1 No change

Economy Profile

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Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 127 DB 2012 Rank 123 Change in Rank down-4
DB 2013 DTF** (% points) 65.3 DB 2012 DTF** (% points) 65.7 Improvement in DTF** (% points) down-0.4
Indicator Japan OECD high income OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

View methodology Payments (number per year)
14 -- 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

View methodology Time (hours per year)
330 -- 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

View methodology Profit tax (%)
26.9 -- 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

View methodology Labor tax and contributions (%)
17.4 -- 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

View methodology Other taxes (%)
5.6 -- 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

View methodology Total tax rate (% profit)
50.0 -- 42.7
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% taxable profit 17.6
Employer paid - Welfare pension insurance 0 paid jointly 8% gross salaries 9.3
Tokyo Metropolitan - Enterprise Tax (on income) 0 paid jointly 9% taxable profits 5.4
Employer paid - Health insurance 1 online filing 140 5% gross salaries 5.3
Inhabitants tax 1 online filing 7% taxable profit (plus 530,000 yen) 3.9
Employer paid - Workmen's accident compensation 0 paid jointly 2% gross salaries 1.8
Tokyo City - Depreciable Fixed Assets Tax 1 1% net value of fixed assets 1.6
Tokyo City - Fixed Assets Tax (on land and building) 1 1% property value 1.3
Fuel tax 1 34,140 yen per kiloliter fuel consumption 1.1
Employer paid - Employment insurance 1 online filing 1% gross salaries 0.9
Tokyo Metropolitan - Real Property Acquisition Tax (for building expansion) 1 4% 70% of building expansion value 0.8
Tokyo City - City Planning Tax (on land and building) 0 paid jointly with Fixed Assets Tax 0% property value 0.3
Tokyo City - Business Premises Tax (on floor space) 1 600 yen/ per square meter floor space 0.3
National - Stamp Tax (on contracts for land sale and building expansion) 1 125,000 yen per contract 0.1
Registration and license tax 1 0% 70% of building expansion value 0.1
Employer paid - Child allowance contribution 0 paid jointly 0% gross salaries 0.1
Tokyo Metropolitan - Automobile Tax 1 67,100 yen fixed fee 0
National - Automobile Tonnage Tax 1 43,200 yen fixed fee 0
Tax on interest 0 20% interest income 0 included in other taxes
Value added tax (VAT) 1 online filing 35 5% value added 0 not included
Totals: 14 330 50.0

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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