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Main contents of 2003 taxation system revision

Last update date January 22, 2019

1.Finance, the securities taxation system (municipal tax, prefectural tax, income tax): Exception of taxation such as miscellaneous incomes that maintenance of review/2 investment environment of 1 allotment taxation affects/3 futures transaction
2.The taxation system of land, house: Taxation stop of abolition/3 special holding tax of office tax affecting revised/2 new enlargement of property tax to affect 1 land
3.Introduction (enterprise tax) of external form standard taxation
4.Others: Tax rate raise in partial abolition/2 tobacco tax of 1 special spousal deduction

Review of 1 allotment taxation

(1)The foundation of exception of withholding taxes tax rate for allotment such as listed stocks

About allotment such as certain listed stocks to receive payment after April 1, 2003, withholding taxes tax rate of income tax was reduced.

Withholding taxes tax rate of income tax to affect allotment such as certain listed stocks
Period to receive paymentTax rate
From April 1, 2003 to December 31, the same year10%
From January 1, 2004 to March 31, 20087%
After April 1, 200815%

(main rule: 20%)

(2)Abolition of the amount of application upper limit of exception that is final income tax return-free

The amount of application upper limit to modify one payment amount of money about allotment such as constant listed stocks to receive payment in allotment targeted for exception that was final income tax return-free of income tax after April 1, 2003 was abolished.

(3)The abolition of the source separation choice taxation

About amount of dividend income to affect stocks, exception of the 35% source separation choice taxation of income tax was abolished having March 31, 2003.

(4)The foundation of prefectural tax allotment percent

About personal allotment to receive payment after January 1, 2004, in the case of payment, person paying the allotment collects allotment percent of 3% (on 5% of after April 1, 2008) extra and delivers to the prefecture by 10th in the next month. Therefore, personal report is principle-free, but subtracts the amount of allotment percent equivalency sum from the amount of income percent when we are reported. The prefecture issues sum equivalent to two-thirds of delivered allotment percent to the municipalities (applied about municipal tax, prefectural tax after share in 2005.).

(5)The abolition (applied about municipal tax, prefectural tax after share in 2004.) of tax-free measures to affect small allotment in residence tax

Maintenance of 2 investment environments

(1)Review of preferential treatment about capital gains to affect listed stocks

The next exception was abolished while exception to tax by preferential tax rate (7% of income tax, prefectural tax 1%, municipal tax 2%) was founded about capital gains at having transferred listed stocks for five years after January 1, 2003. (applied about municipal tax, prefectural tax after share in income tax after share and 2004 in 2003.)
・Exception of provisional tax rate for capital gains to affect long-term possession listed stocks
・Exception of 1 million yen special subtraction to affect capital gain such as listed specific stocks for long term owned

(2)Improvement (for the year change to one live payment method) of pay-as-you-go plan in withholding taxes account

Or it returned and was changed the collection of 7% of equivalency sums of the amount of increase and decrease of income amount of money from the beginning of the year when withholding taxes of income tax in withholding taxes account (specific account which chose withholding taxes) after 2004 affected the withholding taxes account each transfers in total to method, as a general rule, to pay the withholding taxes amount of a tax that remained in a lump by January 10 in the next year without being returned in the end of the year.

About withholding taxes account in 2003, withholding taxes by 15% (after April of the year 7%) of tax rates and monthly payment and kaesafu were done, and amount of money of part more than 7% of equivalency sums of income amount of money to modify account in net totals (amount of money that it returned is excluded.) of income tax that market makers withheld in the withholding taxes account in the half a year in the withholding taxes week a year in total is returned to person who established the withholding taxes account.

(3)As for the prefectural tax stocks, it is founded capital gain percent

Stocks of 3% (on 5% of after January 1, 2008) collect capital gain percent extra from transfer gain after January 1, 2004 by one live payment method and equal method for the year in income tax, and, about income affecting transfers such as personal stocks in withholding taxes account, market makers deliver to the prefecture. Therefore, personal report is principle-free, but subtracts the amount of income percent equivalency sum when we are reported. The prefecture issues sum equivalent to two-thirds of delivered stock transfer gain percent to the municipalities. (applied about municipal tax, prefectural tax after share in 2005.)

Exception of taxation such as miscellaneous incomes to affect 3 futures transactions

About exception of taxation such as miscellaneous incomes to affect futures transaction, we enlarge coverage of exception for securities futures trading with (applied about municipal tax, prefectural tax after share in income tax after share and 2004 in 2003.) which abolishes deadline for application, and reduces tax rate (income tax: 15%, prefectural tax: 1.6%, municipal tax: 3.4%). (applied about municipal tax, prefectural tax after share in income tax after share and 2005 in 2004.)

Revision of property tax to affect 1 land

(1)Adjustment measures of tax burden

Even if it is land which tax burden will climb into, as for the thing meeting each two next important matters, the amount of a tax is left unredeemed.
・Residential land small burden standard of the land in the commercial areas more than 45% is that general residential land is 50% or more more than 55%.
・Rate of drop of valuation of the land for 3 years being national average (-15%) or more.

(2)Correction of property tax valuation in 2004 and 2005

As for the valuation of property tax, it was decided to leave price of the standard year (2003 corresponds) unredeemed for three years in Local Tax Law, but special measures that could revise price by simple method were established when tendency to fall was further seen from index about land prices in 2004 that was the deferment year and 2005.

The abolition of office tax affecting 2 new enlargement

Office tax which affected new enlargement was abolished with for taxation for new construction carried out by March 31, 2003 or the enlargement.

Taxation stop of 3 special holding tax

After 2003, we were considered that we did not perform new taxation for the duration.

The external form standard taxation system degree that amount of money of capital or ante assumes ratio of external form standard a quarter among corporation more than 100 million yen is founded and is applied from 2004.

Standard of assessment of external form standard taxation and standard tax rate
BreakdownStandard of assessment and standard tax rate
Income percentIncome of each fiscal year
Amount of money 4 million yen a year or less: 3.8%
Amount of money that it is 8 million yen a year or less more than 4 million yen a year: 5.5%
Amount of money more than 8 million yen a year: 7.2%
Value-added percent0.48% of value-added sums of each fiscal year
With value-added sum…We added profit and loss to profit distribution frame (net total of the amount of reward salary, net payment interest and net payment rental) of each fiscal year in the single year
Capital percent0.2% of net totals with capital and capital savings amount of money in day of each fiscal year end

The partial abolition of 1 special spousal deduction

We top the offered figure in spousal deduction about spouse (spouse total income amount of money 380,000 yen or less) targeted for subtraction in special spousal deduction, and subtraction of applied part is abolished. (applied about municipal tax, prefectural tax after share in income tax after share and 2005 in 2004.)

2 cigarette tax rate increases

It is raised 0.82 yen (country, the local total) per one tax rate of tobacco tax. (we carry out from July 1, 2003)

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