37. Simplified Method for Calculating Creditable Input JCT 簡易課税制度

簡易課税制度について英語でまとめました（国税庁サイト）。
Japan allows certain small and medium-sized enterprises to calculate creditable input Japanese consumption tax ("JCT") in a simplified manner. The table below provides an overview of such simplified method for calculating creditable input JCT. (Source: National Tax Agency)

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Overview of simplified method for calculating creditable input JCT

Eligible taxpayers	Enterprises with taxable sales two years before (i.e., for the fiscal year before the previous fiscal year) of JPY50 million or less
Formula	Creditable input JCT = Output JCT x Deemed purchase rate (%)
Notification	General Submit a notification of election of the method to the tax office in the place of tax payment before the beginning of the fiscal year for which the taxpayer wishes to apply the method. New enterprise Eligible from the first fiscal year if the taxpayer submits the notification by the end of the first fiscal year.
Cancellation	-   Submit a notification to discontinue the method to the tax office in the place of tax payment before the beginning of the fiscal year for which the taxpayer wishes to cease to use the method.  -   The application of the simplified method may be discontinued only after continued application for at least two years except for the case of business closure. -   The use of the general method after discontinuing the simplified method in the middle of a fiscal year requires the retention of books and invoices for all taxable purchases for that fiscal year.
Notes	-   The simplified method becomes unavailable if taxable sales two years before (i.e., for the fiscal year before the previous fiscal year) exceed JPY50 million even if the notification has been submitted. -   However, the simplified method will be reinstated when taxable sales become JPY50 million or less unless the taxpayer submits a notification for discontinuation.

Deemed purchase rate (%) 

Type of business	Deemed purchase rate (%)
1.      Wholesale	90
2.      Retail, and agriculture/forestry/fishery (food and beverage business only)	80
3.      Agriculture/forestry/fishery (excluding food and beverage business), mining, construction, manufacturing, electricity, gas, and heat/water supply	70
4.      Businesses other than those listed 1, 2, 3, 5 or 6	60
5.      Transportation, communication, finance, insurance, service (excluding restaurants)	50
6.      Real estate	40

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