Is It Necessary in Japan to Increase Capital to Keep Net Assets Positive?

“Do we need to increase the capital of our Japanese subsidiary to keep its net assets on the balance sheet positive?”  This is the question I sometimes receive from foreign companies that have Japanese subsidiaries.

Corporate Effective Tax Rate（実効税率）in Tokyo

The current effective tax rates of a corporation located in the Tokyo Special 23 Wards for a fiscal year that has begun or will begin before October 1, 2019 are as below.

Corporate Effective Tax Rate（実効税率）in Nagoya

The current effective tax rates of a corporation located in Nagoya for a fiscal year that has begun or will begin before October 1, 2019 are as below.

Corporate Effective Tax Rate（実効税率）in Yokohama

The current effective tax rates of a corporation located in Yokohama for a fiscal year that has begun or will begin before October 1, 2019 are as below.

Corporate Effective Tax Rate（ 実効税率）In Japan – How It Is Calculated

I often receive inquiries about how much the effective tax rate in Japan is. Effective tax rates, however, vary in accordance with where a company is located and how much its capital amount is.

"SUTEIN（捨印）" - a very unique Japanese business practice

Among Japanese business practices, I think “SUTEIN（捨印）” is one of the most surprising ones for non-Japanese people.