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Table 1 Overview on the Japanese tax system

From: Regional economic effects of renewable energies - comparing Germany and Japan

National taxes Regional taxes
    Prefecture Municipality
Personal income tax (percent of taxable income) 20% Personal income tax   
Corporate tax (percent of taxable income) 18% Residential tax (minimum rate in JPY)* 1,000 3,000
   Residential tax (percent of taxable income) 4% 6%
   Corporate income tax  
   Local business tax (percent of taxable income/not applied to system operator)   4%
   Electric utility tax (percent of revenue of system operator) 0.7%  
   Special regional corporate tax for electric utilities (percent of electric utility tax) 81%  
   Residential tax (minimum rate in JPY)** 20,000 ~ 50,000 50,000 ~ 150,000
   Residential tax (percent of taxable income) 5% 12.3%
   Asset-based tax   
   Operator fixed asset tax (percent of depreciated, registered asset value)   1.4%
   Consumption-based tax   
   Operator consumption tax (percent of value-added) 0.5% 0.5%
  1. *Calculated as ratio of income from minimum residential tax to overall tax income from residential tax (2.37% in 2012).
  2. **Calculated as ratio of income from minimum residential tax to overall tax income from residential tax (in 2012: prefecture = 22.9%/municipalities = 25.8%).
  3. Source: MIAC (2014) [49], KPMG (2012) [50].
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