How does corporate tax work for a company in Japan?
A company incorporated in Japan pays corporate tax on its worldwide taxable income for each accounting period, with rates and local surtaxes published by the National Tax Agency and local authorities. Filing and payment deadlines are tied to the end of the company's fiscal year.
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How it works
Taxable income starts from the company's accounting profit and is adjusted under tax rules for items treated differently, such as certain provisions and depreciation methods. In addition to national corporate tax, companies generally owe local inhabitant and enterprise taxes assessed by the prefecture and municipality.
Commonly mixed up with
Corporate tax in Japan is sometimes treated as a single flat national rate. The effective burden combines national corporate tax with local taxes that vary by location and company size.
How does corporate tax work for a company in Japan?
| Knowledge, Tokyo | Business and finance |
|---|---|
| Short answer | A company incorporated in Japan pays corporate tax on its worldwide taxable income for each accounting period, with rates and local surtaxes published by the National Tax Agency and local authorities. Filing and payment deadlines are tied to the end of the company's fiscal year. |
| How it works | Taxable income starts from the company's accounting profit and is adjusted under tax rules for items treated differently, such as certain provisions and depreciation methods. In addition to national corporate tax, companies generally owe local inhabitant and enterprise taxes assessed by the prefecture and municipality. |
| Commonly mixed up with | Corporate tax in Japan is sometimes treated as a single flat national rate. The effective burden combines national corporate tax with local taxes that vary by location and company size. |
| Last reviewed | 2026-08-08 |
Short questions
- Is there only one corporate tax?
- No, national corporate tax is combined with local inhabitant and enterprise taxes.
- When is the fiscal year end?
- Companies choose their own fiscal year end, which is registered with the authorities.
- Are there reduced rates for smaller companies?
- Reduced rates can apply to smaller companies under conditions set by the tax authority.
- Must a dormant company still file?
- Filing obligations generally continue even with no taxable profit.
- Where is guidance published?
- The National Tax Agency publishes corporate tax guidance and current rates.
Sources
More in this track
- What is the difference between a KK and a GK company in Japan?
- What are the main steps to incorporate a company in Japan?
- Should a foreign company open a branch or a subsidiary in Japan?
- When does a business have to register for Japanese consumption tax?
- What must an employer set up before hiring staff in Japan?
- What is Japan's qualified invoice system for consumption tax?
- What support exists for foreign companies investing in Japan?
- What should a new business know about office space in Tokyo?
- What business support does the Tokyo Metropolitan Government provide?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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