Revision of the tax rate for Corporate Municipal Resident Tax

In the fiscal year 2016 tax reform, in order to correct the uneven distribution of tax sources among regions and to reduce disparities in financial capacity, the tax rate for the corporate portion of the Municipal Resident Tax has been lowered.
In light of this amendment, starting from the business year that begins on October 1, 2019, the tax rate for the corporate Municipal Resident Tax will be reduced as follows. Additionally, transitional measures have been established for scheduled declarations in conjunction with this tax reform.

Contents of Tax Rate Revision

The tax rate for the Corporate Municipal Resident Tax after the revision in Inagi City is as follows.

Corporate Tax Rate

Amount of capital or amount of investment	Reference (Business year starting by September 30, 2014)	Before Amendment (Business years starting from October 1, 2014 to September 30, 2019)	After the amendment (Business year starting after October 1, 2019)
Mutual companies as defined by the Corporate Law and Insurance Business Law with capital of over 100 million yen	14.7%	12.1%	8.4%
Corporations with less than 100 million yen, or corporations without capital or investment, or unincorporated associations or foundations with designated representatives or managers.	12.3%	9.7%	6.0%

Note: There is no revision to the tax rate for the equalization portion.

Transitional Measures for Scheduled Tax Returns

Due to the revision of the corporate tax rate, for the estimated tax amount for the first business year starting on or after October 1, 2019, the corporate tax rate will be calculated as "Corporate tax amount from the previous business year × 3.7 ÷ Number of months in the previous business year" as a transitional measure.
Note: Normally it is "Corporate tax amount for the previous fiscal year × 6 ÷ Number of months in the previous fiscal year".

Start Date of Application

Applicable from the business year starting on or after October 1, 2019.