Please check this table for the Japanese rate of national tax for years from 1985 to the present day for different Japanese corporate tax paying entities.
In addition to national taxes on income, Japanese companies also have to pay local corporate taxes such as enterprise and inhabitants tax. Later posts will discuss these taxes and give examples of a typical Japanese corporation tax calculation.
One of the most commonly asked questions in Japanese tax due diligence or risk assessment (including FIN48) is how the statute of limitations operates for Japanese tax purposes. There are some important differences between the Japanese system and the US and UK or UK based approaches, with some key points being as follows:
Comparing Japan to US and UK
In contrast to the US, where failure to file certain tax returns (such as those required by a permanent establishment of a foreign company in the US) can leave an open ended exposure that will not expire with time, in Japan the expiration of the statue of limitations over time will in due course mean that historic liabilities will fall out of the period allowed for assessment, although the timing is extended for failure to make filings when due. Read More