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.

If you are interested in how they are calculated, please refer to “Effective Tax Rate In Japan – How It Is Calculated” and also to the chapter in this blog “How the rates of prefectural inhabitant tax, municipal inhabitant tax and business tax are determined by the local governments”.

1.     Effective tax rates in Nagoya by conditions

①    30.6% for a corporation whose

　　　　capital amount is over 100 million yen

②    34.4% for a corporation whose

　　　　capital amount is up to 100 million yen, and

 　　amount of current year’s corporation tax is over 25 million yen, and

　　 amount of current year’s taxable income is over 50 million yen

③    34.3% for a corporation whose

 　　capital amount is up to 100 million yen, and

  amount of current year’s corporation tax is over 25 million yen, and

  amount of current year’s taxable income is up to 50 million yen

④    33.9% for a corporation whose

　　　　capital amount is up to 100 million yen, and

　　　　amount of current year’s corporation tax is over 15 million yen and up to 25 million yen, and

　　　　amount of current year’s taxable income is over 50 million yen

⑤    33.8% for a corporation whose

　　　　capital amount is up to 100 million yen, and

　　　　amount of current year’s corporation tax is over 15 million yen and up to 25 million yen, and

　　　　amount of current year’s taxable income is up to 50 million yen

⑥    33.8% for a corporation whose

　　　　capital amount is up to 100 million yen, and

　　　　amount of current year’s corporation tax is up to 15 million yen, and

　　　　amount of current year’s taxable income is over 50 million yen

⑦    33.6% for a corporation whose

　　　　capital amount is up to 100 million yen, and

　　　　amount of current year’s corporation tax is up to 15 million yen, and

　　　　amount of current year’s taxable income is up to 50 million yen

2.    How the rates of prefectural inhabitant tax, municipal inhabitant tax and business tax are determined by the local governments

①    Prefectural inhabitant tax   (determined by Aichi prefecture)

3.2 % for a corporation whose

　capital amount is up to 100 million yen, and

　amount of current year’s corporation tax is up to 15 million yen

4.0 % for a corporation that doesn’t meet the above condition

②    Municipal inhabitant tax   (determined by the City of Nagoya)

9.7 % for a corporation whose

　　capital amount is less than 100 million yen, and

 amount of current year’s corporation tax is up to 25 million yen

12.1 % for a corporation that doesn’t meet the above condition

③    Business tax   (determined by Aichi prefecture)

6.988%(6.7%) for a corporation whose

    　　　　　　 capital amount is up to 100 million yen

0.875%           for a corporation whose

    　　　　　　 capital amount is over 100 million yen

　note1: the rate bracketed "()" is only applied for a corporation whose

　　　　　　　　　amount of current year’s taxable income is up to 50 million yen.

　note2: if certain conditions are fulfilled, lower tax rates for the portion of taxable income up to 4 million yen and for another of that 

                over 4 million yen and up to 8 million yen are applied.

(Note: This blog is written on July 17, 2019 based on the information available then.)

written by YAMAMOTO CPA OFFICE  https://www.accounting-solutions-japan.tokyo/en-home