19. SME Tax Relief - Reduced Corporate Tax Rate 中小法人の法人税の税率

中小法人の法人税の税率について英語でまとめてみました。（国税庁ホームページ）

中小法人と中小企業者の優遇税制全般についてはこちら！

Small and medium-sized enterprises ("SMEs") in Japan can be classified broadly into the following two types:

• SMEs under Corporate Tax Law ("CTL"); and
• SMEs under Special Measures Tax Law ("SMTL")

One of the benefits for these SMEs is a reduced corporate tax rate. See below for details.

For other SME tax benefits click HERE. 

For more about Japanese tax, click HERE:

The author of this website is not responsible for any damage or loss arising related to this website.

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One of the benefits available to SMEs under Corporate Tax Law is reduced corporate tax rates. An overview of such tax relief under tax law as of 1 April 2020 is as follows: (Source: National Tax Agency) 

I. SMEs (For a definition, see Note 1 below.) 

• First 8 million - 15%. For certain companies (see Note 2 below), 19%. 
• Amount in excess of JPY8 million - 23.2%

II. Non-SMEs - 23.2%

Notes:

1. For the purposes of the reduced corporate tax rate, an SME is a company with stated capital or contributed capital of JPY100 million or less or a company with no stated capital or contributed capital at the end of the fiscal year, excluding the following companies :

A. A Japanese and foreign insurance company 

B. A company fully controlled by a Large Company as defined below.

• A company with stated or contributed capital of JPY500 million or greater 
• A Japanese and foreign insurance company 
• The trustee company of a trust in which the trustee is subject to corporate tax 

C. A company within a 100% group where its outstanding shares or contributed capital is wholly owned by more than one Large Company within the group (excluding the companies listed in B.)   

D. An investment company 

E. A company formed under Act on the Securitization of Assets to conduct asset securitization business (i.e., Tokutei Mokuteki Kaisha or TMK)

F. The trustee company of a trust in which the trustee is subject to corporate tax 

2. If the company's average income for the last three fiscal years exceeds JPY1.5 billion, 19% is applied to the first 8 million of the income of the fiscal year. 

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