🏭 Japan Corporate Tax Calculator

Corporate tax (法人税, hōjinzei) is the national tax on a company’s taxable income in Japan, filed on the fiscal year’s return (法人税申告書). The headline rates: 15% on taxable income up to 8 million yen for small companies with paid-in capital under 100 million, and 23.2% on the rest. But the effective burden is higher once you add the corporate resident tax (法人住民税) and business tax (事業税), which together push the combined rate to roughly 30-34% for profitable small firms. Consumption tax on sales is collected and remitted separately — see the consumption tax calculator.

The corporate resident tax has two parts: a fixed per-head amount (均等割) and a 10.3%-ish surcharge on the national tax. Business tax (事業税) is a separate prefectural levy on income — 3.5-7% depending on size. Adding them all, the effective tax rate for a small profitable company lands around 30-33% in 2026.

The calculator takes your company’s taxable income (課税所得 — revenue minus deductible expenses) and applies the national rate: 15% on the first 8M if you qualify as a small company, 23.2% above. It then adds the corporate resident tax (approx. 10.3% of national tax for the income-based part, plus a per-head equal levy) and the prefectural business tax (3.5% small-company rate on the first 4M, 5.3% up to 8M, 7% above — simplified here).

Reduced rate for small companies. A lower national corporate-tax rate applies to SMEs below the capital threshold.

Local corporate taxes (prefectural and municipal) apply separately.

The effective rate line is the one owners actually feel — it is the whole tax divided by taxable income. Consumption tax (see the consumption tax calculator) is collected on top of the price and remitted separately; this tool covers the income taxes only.

1. Enter the company’s taxable income for the fiscal year (in yen).
2. Select company size (capital under or over 100 million yen).
3. Optionally enter the per-head resident tax equal levy for your city.
4. Click Calculate to see national tax, resident tax, business tax and the effective rate.
5. Review the year-end planning note about the 8M threshold.

What is the actual total tax on corporate profits?

National corporate tax (15%/23.2%) plus corporate resident tax (about 10.3% of national + a per-head levy) plus prefectural business tax. For a small company the combined effective rate is roughly 30-34%, not the headline 15%.

Who qualifies for the 15% small-company rate?

A company with paid-in capital of 100 million yen or less pays 15% on the first 8 million yen of taxable income each fiscal year. Companies above the capital threshold pay 23.2% on the entire taxable income.

What is corporate resident tax (法人住民税)?

A local tax paid to the city and prefecture: a fixed amount per company (均等割, typically 50,000-80,000 yen per year for small firms) plus an income-based part of about 10.3% of the national tax.

What is business tax (事業税)?

A prefectural tax on corporate income, roughly 3.5% (small companies, first 4M) to 7% on higher profits. It is a deductible expense for the national tax — a rare example of a tax reducing another tax’s base.

Can I pay myself a salary to reduce corporate tax?

Yes — a director’s salary is a deductible corporate expense, shifting profit from the company (corporate rates) to you (personal income tax + resident tax). Whether the combined personal rate beats the corporate 30%+ depends on your salary bracket.

When is the corporate tax return due?

Within two months of the fiscal year-end. Extensions are possible (up to one month with the 申告期限延長 request), and tax is paid in the same filing in two instalments.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

The 8-million-yen threshold is the most powerful lever in the system: a company earning 8.5M taxable pays 15% on the first 8M and 23.2% only on the 500K above — the marginal jump is why many small companies time deductions (bonuses to directors, asset purchases) to stay under it. The 15% rate applies to companies with capital under 100M; capital over that pays 23.2% on everything. Depreciation, employee salaries and entertainment expenses are the classic adjustments, and a director’s salary you pay yourself is deductible corporate expense (so it shifts income from corporate to personal, taxed under the income tax rules). Keep the estimate per fiscal year — the small-company rate resets every year-end, and a December-heavy profit spike can push you over the cliff.