Japan: Tokyo local tax rate changes, postponed | KPMG Global
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Japan: Tokyo local tax rate changes for companies, postponed

Japan: Tokyo local tax rate changes, postponed

A bill to amend Tokyo’s metropolitan tax law and postpone the application of the amendments to local tax rates with respect to companies was passed by the Tokyo Metropolitan Assembly on 30 March 2017.


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National legislation to postpone an increase in the consumption tax rate was enacted in late 2016, with the consumption tax rate increase (from 8% to 10%) being postponed by two and a half years. Because local taxation of companies was scheduled to be amended when the consumption tax rate was increased to 10%, the timing of the amendments for local taxation of companies also needed to be postponed by two and a half years.

The local taxation measures approved by the Tokyo government will apply to fiscal years beginning on or after 1 October 2019 (instead of 1 April 2017).  


Read a March 2017 report [PDF 183 KB] prepared by the KPMG member firm in Japan: Tokyo - Postponement of Amendments to Local Tax Rates


The KPMG report also includes discussions of:

  • Repeal of the special local corporation tax 
  • Increase in business tax rates
  • Increase in local corporation tax rate
  • Reduction in prefectural and municipal tax rates

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