OAK Tax Corporation

Special Reconstruction Tax

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Special Reconstruction Tax will be imposed on individuals and corporations (including non-permanent residents, non-residents and  foreign corporations) for reconstruction after the Great East Japan Earthquake, as follows.

Special Reconstruction Income Tax
Special Reconstruction Income Tax (2.1%) will be imposed on the standard income tax additionally from the taxable year of 2013 to  2037for 25 years,
i.e., the final income tax liability during the above period will be  the standard income tax x 102.1%.

Special Reconstruction Corporate Tax
Special Reconstruction Corporate Tax (10%) will be imposed on the standard corporate tax additionally for the fiscal years beginning  inthe period from 1 April 2012 to 31 March 2015,
i.e., the final corporate tax liability for the above fiscal years will be  the standard corporate tax x 110%.

Withholding for Special Reconstruction Tax
Special Reconstruction Tax regulation will be applied to withholding income tax as well,
i.e., the applicable withholding tax rate during the period from 1 January 2013 to 31 December 2037 will be  the standard withholding  taxrate x 102.1%.
Withholding agents have to withhold and pay Special Reconstruction Income Tax together with the standard withholding income tax.

Typical withholding tax rate
Salary Income	The new withholding tax table reflecting Special Reconstruction Tax will be provided by the government.
Professional Fees	10.21% (20.42% for the excess over ￥1,000,000)
Income paid to Non-Residents and Foreign Corporations	20.42% (excluding the case of reduction or exemption under the tax convention)

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