Today’s lecture is about “Per capita tax”
The corporate tax is income tax, which means that tax is levied on income. If company does not make income, corporate tax is not levied.
However, even if the company is making a loss, the company must pay per capita tax. Per capita tax is levied based on the capita amount and number of employees. In Tokyo, minimum amount is 70,000 yen.
The company pay per capita tax to each city where it has offices or factories. Therefore, the company who has many branches must pay more per capita tax.
For the branch of foreign company, capital amount of overseas head office is used to calculate per capital tax. Therefore, even if the Japan branch is very small, the branch must pay huge amount of per capita tax if the capital amount of overseas head office is large