Japan Corporate Income Tax
Detailed corporate income tax rates and rules for Japan in 2026.
The national corporate tax rate is 23.2% for standard corporations. Small and medium-sized enterprises (SMEs) with paid-in capital of ¥100 million or less benefit from a reduced rate of 15% on the first ¥8 million of taxable income. When combined with local corporate taxes (enterprise tax, local corporate tax, and inhabitants tax), the effective total corporate tax rate is approximately 30% for most companies, though the exact rate varies by municipality and company size.
Standard Rate
23.2%
Small Business Rate
15%
Additional Notes
Japan applies a special corporate enterprise tax on companies with paid-in capital exceeding ¥100 million, calculated on a value-added and capital base rather than income alone. A corporate reconstruction surtax of 10% on the base national corporate tax was in effect but has since expired. R&D tax credits, investment incentives, and special economic zone provisions can further reduce the effective corporate tax burden.
How Japan Corporate Tax compares
Japan’s corporate tax rate of 30% is the 16th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
