Japan: Tokyo corporate tax rate; consumption tax rate | KPMG | GLOBAL

Japan: Corporate tax rate in Tokyo; postponed consumption tax rate

Japan: Tokyo corporate tax rate; consumption tax rate

Measures establishing the rates for local taxes—business tax and “inhabitant” tax—in Tokyo were passed by the Tokyo metropolitan assembly on 15 June 2016.


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The effective corporate tax rates for a company subject to “size-based business taxes” (i.e., a company with stated capital exceeding JPY 100 million) will be as follows for fiscal years:

  • From 1 April 2016 to 31 March 2017—30.86%
  • From 1 April 2017 to 31 March 2018—30.86%
  • From 1 April 2018—30.62%

Consumption tax rate increase to be postponed

The prime minister on 1 June 2016 announced that a planned increase to the rate of consumption tax (from 8% to 10%) will be postponed, and it is expected that bills to amend the consumption tax law, to reflect this postponed rate increase, will be submitted to the Japanese Diet later this year.


Read a June 2016 report [PDF 148 KB] prepared by the KPMG member firm in Japan: Tokyo – Local tax rates applicable for fiscal years beginning on or after 1 April 2017

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