Japan Inhabitant TaxIn Japan, in addition to the rates of income tax for an individual and for corporations, an "inhabitant tax" is imposed that significantly increases the rate of effective tax that applies to the income of the business.
The method of calculation is rather complicated and is comprised of two different levies:
1) A levy on income
2) A levy on capital
There are small differences between the regions in Japan in regard to the final tax as a result of the location of the business, as well as taking account of the number of employees.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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