Establishing Corporations in Japan: Understanding the Per Capita Levy Even in Deficit

【Koshida Accounting Firm Column Date:

Hi, my name is Taisei Koshida, and I am a certified public accountant and ax accountant.


I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.


If you are unclear about the per capital levy in Japan, you might find this blog helpful.




The Meaning of The Per Capital Levy In Japan

These are taxes levied for the administrative services received from local governments. Just like individuals, corporations benefit from these administrative services, such as law and order and basic infrastructure, and hence are required to pay certain inhabitant taxes whether in profit or not.


How Much Is The Per Capita Levy In Japan?

Companies with a reserved capital of ten million yen or less need to pay twenty to thirty thousand yen to the administrative division of Japan and fifty thousand yen to cities, towns, and villages each year. As the reserved capital increases, the per capita levy will also increase.


Local Governments Requiring The Per Capita Levy Payment

Typically, you should pay this levy to the prefecture and city where your company’s headquarters is registered. If you establish a branch outside of the main headquarters and conduct business there, you will need to pay an additional per capita levy for that location.



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