It is said that the possible use of graduated rates in the calculation of both corporation and business taxes are differing the local tax rates utilized and the per-capita liabilities based on the prefectural and municipal taxes and effective statutory tax rates that will range from taxpayer to taxpayer. In addition, the effective statutory tax rates for companies with certain capital in excess of JPY100 million is specified by following the introduction of sized based business and somewhat determined by a number of factors other than taxable income.
For a figurative objective, the easiest and effective statutory tax rate will be based consequent to the maximum rates in Tokyo suitable to a company whose certain capital is over JPY100 million based and as follow on the table below:
Fiscal year beginning
|In the period from April 1 2015 to March 31 2016||In the period from April 1 2016 to March 31 2017||In the period from April 1 2017 to March 31 2018||In the period from April 1 2018 to March 31 2019|
|Corporate tax – ①||23.9 percent||23.4%||23.4%||23.2%|
|Local tax – ②||12.9%||12.9%||7.0%||7.0%|
|Local corporate tax – ③||4.4%||4.4%||10.3%||10.3%|
|Business tax – ④||3.1%||0.7%||3.6%||3.6%|
|Special local corporate tax – ⑤||93.5%||414.2%||0.0%||0.0%|
|Effective tax rate * 1||32.11%||29.97%||29.97%||29.94%|
* 1 = (① x (1 + ② + ③) + ④ + ④x⑤) / (1 + ④ + ④x⑤)
Additional from the information above, such a company that is subject to a sized based business tax will increase the overall effective statutory tax rate. Furthermore, after taking into account of the tax deductible nature of business tax and special local corporation tax payments the effective rate It will be determined.