Japan: Tokyo business tax rates, and 2016 tax reform

Tokyo business tax rates

An ordinance relating to Tokyo metropolitan taxes, issued 31 March 2016, will amend the Tokyo business tax rates for taxpayer companies that are subject to “size-based” business taxes (broadly, companies with stated capital exceeding JPY100 million).

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The Tokyo business tax rates that would apply for fiscal years beginning on or after 1 April 2017 have not yet been determined—the amendments are scheduled to be proposed in the second ordinary session or later ordinary sessions of fiscal year 2016 by the Tokyo metropolitan assembly.  Still, the effective corporate tax rates (based on standard tax rates and the Tokyo business tax rates) under Japan’s 2016 tax reform—i.e., the 2016 tax reform bills passed by the National Diet on 29 March and the amended tax laws promulgated on 31 March 2016—will be reduced. 

 

Read an April 2016 report [PDF 166 KB] prepared by the KPMG member firm in Japan: 2016 Tax Reform – Tokyo Business Tax Rates

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