Japan

Overview

Last reviewed - 27 December 2019

Japan, a nation in East Asia, is an archipelago of 6,852 islands in the Pacific Ocean. It is a constitutional monarchy, with Tokyo as its capital. More than 99% of the population speaks Japanese. The economy of Japan is the third largest in the world after the United States and the People's Republic of China. Japan's currency is the yen (JPY).

The PwC Japan group includes PwC Aarata, PricewaterhouseCoopers Kyoto, PricewaterhouseCoopers Co., Ltd., PwC Tax Japan, PwC Legal Japan, and their subsidiaries. Each entity is a member firm of the PwC global network in Japan, operating as a separate and independent legal entity. To address complex and diversified business challenges, PwC Japan consolidates the expertise of our assurance, advisory, and tax professionals.

As a professional services firm with approximately 4,000 partners and staff, PwC Japan provides assistance to clients with a variety of tax-related compliance and consulting services. For tax consulting services, PwC Japan has significant expertise and experience in global tax management, transfer pricing consulting, merger and acquisitions planning and execution, corporate recovery and reorganisation consulting, financial services and real estate consulting, and customs and indirect tax consulting.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

23.2

Corporate income tax (CIT) due dates
CIT return due date

Within two months after the end of company's annual accounting period.

CIT final payment due date

Within two months after the end of company's annual accounting period.

CIT estimated payment due dates

Within two months after the end of the sixth month of the corporation's accounting period.

Personal income tax (PIT) rates
Headline PIT rate (%)

45, plus 2.1% surtax.

Personal income tax (PIT) due dates
PIT return due date

15 March

PIT final payment due date

15 March

PIT estimated payment due dates

31 July and 30 November

Value-added tax (VAT) rates
Standard VAT rate (%)

Consumption tax: 8

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 20 / 20 / 0;

Non-resident: 15 / 20 / 20

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

Gains arising from sale of stock are taxed at a total rate of 20.315% (15.315% for national tax purposes and 5% local tax).

Gains arising from sale real property are taxed at a total rate of up to 39.63% (30.63% for national tax purposes and 9% local tax) depending on various factors.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

55

Gift tax rate (%)

55

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.