Revision of the tax rate for Corporate Municipal Resident Tax

As a result of the tax reform in fiscal year 2016, the tax source disparity among regions has been corrected, and efforts have been made to reduce the fiscal power gap, leading to a decrease in the tax rate for the Municipal Resident Tax corporate tax allocation.
In light of this reform, starting from the business year that begins on October 1, 2019, the tax rate for the Municipal Resident Tax corporate tax allocation 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 years starting on or 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, a transitional measure will be implemented for the estimated tax amount for the first business year starting on or after October 1, 2019, where the corporate tax will be calculated as "Corporate tax amount for the previous business year × 3.7 ÷ Number of months in the previous business year".
Note: Normally, it is "Corporate tax amount for the previous business year × 6 ÷ Number of months in the previous business year".

Start Date of Application

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