(Published on: 2019/5/22)
Japanese government wants to raise salaries to make everyone happy. But some Japanese companies are not very excited to do this, as they do not seem to be doing well. They need a tax benefit. I see. ‘Tax credits for salary growth’ is a thing that is worth considering.
If your company has employees and you are thinking about any ways to save corporation taxes, you can just look at the spreadsheet below. I know tax rules are complicated and you don’t want to learn. Basically, you just need salary information in the previous fiscal year and current fiscal year (additional information might be needed for additional tax credits). If you raise salaries for your employees, the company might take the tax credits (15% or 25% of salary increase). Do your employees deserve a raise? Do you think they will look for better jobs unless you raise salaries? When you think about this kind of things, it is good to know how much tax your company can save.
This tax credit rule is applied when a fiscal year begins within the period from 1 April 2018 to 31 March 2021. Also, this spreadsheet is intended for small and medium-sized companies (companies whose capital share is JPY 100 million or less, etc).
It’s free.
If you have any questions or comments (or error!), please let me know.
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