What elements compose the Value-Added tax base?

The sum of employee compensation (payroll & bonuses), net interest payments, and net real estate rent payments, plus or minus annual accounting profit/loss.

Which corporations are subject to this tax in Japan?

Standard corporations with stated registered share capital exceeding 100 million JPY at the close of the financial fiscal year.

JapanUpdated for 2026Finance

Japan Size-Based Business Enterprise Tax Calculator 2026 (Gaikei Hyoujun Kazei)

Calculate prefectural enterprise taxes for large Japanese corporations (capital >100M JPY) across the Value-Added factor (payroll, interest, rent), Capital factor, and Income factor.

Corporate Income Tax Taxes & Duties Profit Margins & Pricing

Calculated Result

Total Enterprise Tax Due

¥5,700,000

Value-Added Factor Tax (1.2%)

¥4,200,000

Calculator Inputs

Stated Share Capital Base

Quick select:

Annual Payroll & Compensation

Quick select:

Taxable Operating Income (Negative if loss)

Quick select:

Total Enterprise Tax Due

¥5,700,000

Value-Added Factor Tax (1.2%)

¥4,200,000

Capital Factor Tax (0.5%)

¥1,000,000

Income Factor Tax

¥500,000

Tax Factor Composition

Capital Factor

¥1,000,000(18%)

Value-Added Factor

¥4,200,000(74%)

Income Factor

¥500,000(9%)

Calculated under Local Tax Act Art. 72-2. Corporations with capital over 100M JPY must pay value-added and capital factor taxes regardless of net operating losses.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: 地方税法第72条の2 (法人事業税・資本金1億円超法人に対する付加価値割及び資本割の外形標準課税基準)Last Verified: 2026-09-03

Calculation Methodology

Tax = Income Factor + Value-Added Factor (1.2%) + Capital Factor (0.5%).

Frequently Asked Questions

Yes. Even if a corporation generates zero taxable income or an operating deficit, Value-Added and Capital factors remain statutory tax liabilities.

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Japan

Japan Size-Based Business Enterprise Tax Calculator 2026 (Gaikei Hyoujun Kazei)

Calculator Inputs

Tax Factor Composition

Calculation Methodology

Frequently Asked Questions

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