Under the 2015 tax reform, the standard business tax rates for a company that is subject to taxation as a size-based business—broadly, a company with stated capital exceeding JPY100 million (about U.S. $815,000)—were amended, and effective in two phases: for fiscal years beginning on or after 1 April 2015, and for fiscal years beginning on or after 1 April 2016.
Initially, the municipal tax authority responsible for establishing the Tokyo business tax rates only issued tax rates relating to the first period—for fiscal years beginning on or after 1 April 2015. It did not include the tax rates for fiscal years beginning on or after 1 April 2016.
The Tokyo municipal tax authority in late June 2015 issued an ordinance to amend the tax rates for fiscal years beginning on or after 1 April 2016.
Read a July 2015 report [PDF 111 KB] prepared by the KPMG member firm in Japan: Tokyo Business Tax Rates Applicable for Fiscal Years Beginning on or after 1 April 2016
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