Section 3. Taxes in Japan

3.8 Other principal taxes

There are a variety of other taxes levied on income, the acquisition/ownership of assets, consumption and other transactions in addition to those described above. Taxes levied on the ownership of assets to which many businesses are subject include the fixed asset tax and the city planning tax. Land, structures and depreciable assets for business use are subject to a fixed asset tax of 1.4%, payable by the owners of said property as of January 1 each year. The city planning tax is levied at a rate of 0.3% on land and structures within city planning zones. Companies in major cities such as Tokyo and Osaka having facilities exceeding 1,000 square meters in floor space and/or having more than 100 employees are subject to business office taxes. The tax rates are 600 yen per square meter of floor space and 0.25% of the total amount of employee salaries.

Furthermore, there is a registration and license tax levied for the registration of real estate/companies and the issue of business licenses, as well as a stamp duty payable as a tax on stipulated documents. Gift tax, inheritance tax (see 3.7.7) and other special-purpose taxes must also be borne in mind.

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