Corporate tax rates, Enterprise Tax, the minimum inhabitant tax, and taxes due at zero profit

Corporate Tax rates are roughly 15% on profit up to 8 million yen and about 23.2% on profit above that, plus a prefectural tax (around 0.23% of profit for a small business — figures vary and should be checked against the primary source) and a municipal tax (around 1.39% of profit). Chat participants generally estimate the total tax burden on a company at around 28-30%+ of profit; one message cited a figure of around 40% "at steady state," which is not officially confirmed and may refer to a different calculation base. Enterprise Tax (事業税) varies by region and company size; in Tokyo it can reach up to 12.6% of profit for large companies with capital above 100 million yen, with different rates for different company categories depending on size and region of registration. Corporate inhabitant tax (法人住民税) is a flat municipal tax paid every year even without income or profit: for capital above 10 million yen (and fewer than 50 employees) the minimum is about 180,000 yen a year, versus about 70,000 yen for capital under 10 million yen; an official bracket table exists for Tokyo. In a company's first year with zero profit, national 法人税 and 地方法人税 can be zero, but local taxes filed through eLTAX still need to be correctly filed and paid, since fixed minimum amounts can apply regardless of profit. Source: https://sogyotecho.jp/goudougaisya-zeikin/ — Breakdown of corporate tax rates for GK/KK companies on a Japanese business-registration resource.. Source: https://www.mipro.or.jp/english/English_Document/hti0re0000000vcf-att/Tax_e.pdf — Official English-language guide to corporate taxes in Japan.. Source: https://www.tax.metro.tokyo.lg.jp/documents/d/tax/6-4-3b — Official Tokyo Metropolitan bracket table for the corporate inhabitant tax (PDF).. Source: https://www.freee.co.jp/kb/kb-accounting/corporate-inhabitant-tax/ — freee reference article on the corporate inhabitant tax..