Renewable energy

As prime minister Suga promised the carbon free by2050, renewable energy is gathering attention.

Today, I outlined local enterprise tax for renewable energy which is reformed in 2020.

Enterprise tax and special enterprise tax

The tax base and tax rate differ depending on whether share capital is more than JPY 100 million, or JPY 100 million or less.

① Corporations with a share capital exceeding JPY 100 million
In the case of a Tokyo-based company the applicable rates would be as follows:,
Revenue levy: 1.1025%
Value-added levy(*1): 0.3885%

Capital levy (*2): 0.1575%

(*1)The base of the value-added levy consists of salaries, net interest payments, net rent payments and the taxable income before deducting NOLs of the corporation carried forward from previous years. In cases where the result is negative, the base is deemed to be zero.

(*2) The base of the capital levy is the total amount of share capital and capital reserve of the corporation as of the end of the fiscal year.

② A corporation with a share capital of JPY 100 million or less
In the case of a Tokyo-based company the applicable rates would be as follows:,
Revenue levy: 1.1025%
Income levy: 1.9425%