Tax rate of corporate in Japan ( 7th, June, 2017)

In the case the amount of pretax profit ( zeibikimae Junrieki = 税引前純利益 ) is 1 million yen.

Corporation tax ( Hojin zei ): 1 million yen × 15% = 150,000 yen

Corporate resident tax ( Hojin Juminzei ) : 150,000 yen × 17.3% + 70,000 yen = 95,950 yen

Business tax ( Jigyo zei ): 1 million yen × 2.7% = 27000 yen.

Special local corporation tax ( chiho hojin tokubetsu zei ) : 27000 yen × 81% = 21,870 yen

Total 294,820 yen

So, about 30% of pretax profit will be paid to tax.

In there are any profits in the company, only 70,000 yen is levied.

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