Stated Capital -calculation factor under Japanese tax/Japan AC Outsourcing

Japan AC Outsourcing Co., Ltd. SAKUMA CPA OFFICE



Japan AC Outsourcing Co., Ltd. SAKUMA CPA OFFICE We specialize in providing professional Accounting &Bookeeping and Tax services in Japan.



Stated Capital of Company -calculation factor under Japanese Tax Laws Under the current Companies Act, regulations concerning the minimum amount of stated capital were abolished, and the incorporation of a stock company has become possible with a stated capital of zero yen or more. On the other hand, for the Corporation Tax Act, Consumption Tax Act and Local Tax Act under which the amount of stated capital is a calculation factor, the following are listed as main provisions. ・Reduced corporation tax rate: The corporation tax rate is basically 30%, however, in the case of a corporation the stated capital of which is not more than 100 million yen, the corporation tax rate is 18% up to the taxable income of 8 million yen. ・Exclusion of entertainment expenses from deductible expenses:In the case of a corporation the stated capital of which is not more than 100 million yen, 90% of the entertainment and social expenses spent can be included in deductible expenses up to 6 million yen. ・Values of depreciable assets in deductible expenses:In the case of a corporation the stated capital of which is not more than 100 million yen, all acquisition values of petty sum depreciable assets (the per unit price of which is less than 300 thousand yen) can be included in deductible expenses at the time of acquisition. ・Consumption taxes:Special treatment intended for a new corporation: In the case of a new corporation the stated capital of which is less than 10 million yen, in principle, such corporation will be a tax-exempt enterprise for 2 years after its incorporation. ・Local tax/corporate enterprise tax:In the case of an ordinary corporation the stated capital of which exceeds 100 million yen, the tax based on business size will apply. For the amount of tax subject to the tax based on business size, the amount of the stated capital, etc., is taken into consideration as a calculation factor.
・Local tax/corporate inhabitant tax:For the determination of the tax rate of the per-capita-based portion of the corporate inhabitant tax and the special tax rate of the corporation-tax-based portion of the corporate inhabitant tax, the amount of stated capital is taken into consideration as a calculation factor. Tax Based on Business Size Applicable to Japanese Branch of Foreign Corporation When a foreign corporation establishes a Japanese branch, the tax based on business size will apply to corporate enterprise taxes (local taxes), depending on the amount of stated capital, etc., of the foreign corporation.