Business Tips in Japan Tax Vol.1

Corporate tax rate is changed.

The company which fiscal period start from April 1st(account closed after April 1st included) will be imposed new corporate tax rate.

Corporate tax rate : before 30% new 25.5% (if companies net profit is over ¥800mil)

Reducing Balance Depreciation change 250% into 200%.

So far reducing balance depreciation rate was 2.5 times of Straight-line depreciation rate.

Ex: The goods price is ¥1,000 and its duration is 5 years. Straight line depreciation will be ¥200/year=(20% of original price)

Before reducing balance depreciation rate was computed 2.5 times of straight line depreciation rate(20%*2.5(250%)=50%).

New reducing balance depreciation use 200% depreciation.

Hence, if it same condition as above, new rate will be 20%*2.0(200%)=40%

Hope above tips good works on your companies accounting.

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