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HOME  > Past issues  > 2010 June 30 - July 6  > Corporate tax is not as high as business circles claim
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2010 June 30 - July 6 TOP3 [FINANCE]

Corporate tax is not as high as business circles claim

June 24, 2010
Thanks to the government’s system of corporate tax exemptions, Japan’s largest companies pay only around 30 percent in corporate taxes, much lower than the legal rate of 40 percent, Akahata revealed.

According to Akahata, the average corporate tax paid by the top 100 Japanese business entities between 2003 and 2009 was 33.7 percent due to tax breaks for research and development as well as foreign tax credits.

While business circles call for the corporate tax rate to be lowered to 25 percent, Sumitomo Chemical, headed by the chair of the Japan Business Federation (Nippon Keidanren), paid only 16 percent in corporate tax.

The tax rate paid by Toyota Motor was 30.1 percent, and Honda was 24.5 percent. The tax rate for Panasonic was 17.6 percent, Sony 12.9 percent, and Bridgestone 21.3 percent.

In the January edition of the magazine devoted to tax issues “Zeimukoho,” Keidanren’s Business Infrastructure Bureau Director Yasuhisa Abe stated, “Considering various exemption measures and depreciation deductions, the corporate tax is not as high as it first appears.”
- Akahata, June 24, 2010
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