Special depreciation and tax credit for Productivity Improvement Facilities |
Special depreciation and tax credit for productivity improvement facilities for SME |
Machinery |
Unit costover 1.6 million yen |
Tools for measuring and inspection |
Unit costover 300,000 yen and total cost for the fiscal year over 1.2 million yen |
Equipment |
Unit costover 1.2 million yen for a) multifunction machine connected to the internet b) measuring and test equipment |
Computers |
Totalcost for the fiscal year over 1.2 million yen |
Software excluding master copies |
Unit costover 700,000 yen or total cost for the fiscal year over 700,000 yen |
Others |
a) Trucks b) Ships for coastal service |
SME (small and mediumsized enterprises) mean corporations whose paid-in capital are 100 million yen or less.
This will be applicable for the productivity improvement facilities for the domestic business acquired during the period from January 202014 till March 31st 2017. In case of acquiring by March 31 2014, it will be applicable forthe fiscal year which includes April 1 2014.
Early termination of theSpecial Reconstruction Corporation Tax |
After the termination of the special reconstruction corporate tax, the withholding special reconstruction tax can be offset againstcorporate taxliabilities for the year along with income tax imposed on interest, dividendsand so on as the prepaid corporate tax.
Expansion of the limitationfor deductible entertainment expenses |
This will be applicable for the fiscal years beginning after 1 April2014.
Expansion of the taxcredit for increase of salary payment |
This will be applicable for the fiscal years beginning between April 1 2013 and March 31 2018.
Introduction of Local Corporate Tax (National tax) and reduction of tax rates of inhabitant tax and enterprise tax |
@@inhabitant tax@ |
Current |
From 1 Oct 2014 |
||
Standard rate |
Upper rate |
Standard rate |
Upper rate |
|
prefectural |
5.0 |
6.0 |
3.2 |
4.2 |
municipal |
12.3 |
14.7 |
9.7 |
12.1 |
Size based enterprise tax |
Current |
From 1 Oct 2014 |
Up to4,000,000 |
1.5 |
2.2 |
4,000,001 to8,000,000 |
2.2 |
3.2 |
8,000,001 and upwards |
2.9 |
4.3 |
Income based enterprise tax |
Current |
From 1 Oct 2014 |
Up to4,000,000 |
2.7 |
3.4 |
4,000,001 to8,000,000 |
4 |
5.1 |
8,000,001 and upwards |
5.3 |
6.7 |
Special local tax(imposed on |
Current |
From 1 Oct 2014 |
Size based enterprise tax |
148 |
67.4 |
Income based enterprise tax |
81 |
43.2 |
Employment IncomeDeduction |
Employment Income Deduction |
Current |
2016 |
2017 |
Gross employment Income@(A) |
Employment Income Deduction |
||
Up to1,625,000 |
650,000 |
do. |
do. |
1,625,001 to1,800,000 |
(A) x 40% |
do. |
do. |
1,800,001 to3,600,000 |
(A) x 30% +180,000 |
do. |
do. |
3,600,001 to6,600,000 |
(A) x 20% +540,000 |
do. |
do. |
6,600,001 to10,000,000 |
(A) x 10% +1,200,000 |
do. |
do. |
10,000,001 to12,000,000 |
(A) x 5% +1,700,000 |
(A) x 5% +1,700,000 |
2,200,000 |
12,000,001 to15,000,000 |
2,300,000 |
||
15,000,001 and upwards |
2,450,000 |
Revision of deemed taxable purchasing ratio for the simplified calculation method for consumption tax |
Type |
Deemed taxable |
Scope of business |
|
Current |
After 1 April 2015 |
||
1 |
90% |
Wholesale |
do. |
2 |
80% |
Retail |
do. |
3 |
70% |
Agriculture, forestry, fishing, mining, |
do. |
4 |
60% |
Business other than Type 1, 2, 3 and 5 |
Business other than Type 1, 2, 3 and 5including food service |
5 |
50% |
Real estate, transportation, |
Transportation, communication, financialand insurance service, servicesexcluding food service |
6 |
40% |
n/a |
Real estate |