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Effective Tax Rate

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Office in Japan

While you ran it, you have heard word of “effective rate of tax”.

It is to say that Japanese effective tax rate is around 40%, meanwhile, situations Small medium-sized enterprises are different in some cases.

In case of small business,capital 100 million yen or less, reduced rate, average between 24% and 28% for small business which taxable income less than 8 million yen, applied in consideration of taxable income and number of the branch offices.

In this way, Japan is not such high effective tax in Asian nations when we apply reduced tax rate.

In late years each administrative body prepares for various preferential treatment such as the free rental office for a short-term usage and reductions of taxes about the real estate acquisition in order to perform a foreign capital invitation.Link

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