What is the Defense Special Corporate Tax?

A defense special corporate tax has been enacted to secure defense spending.

・When it comes into effect

・Amount of tax to be paid

・Points to note

We will explain these points.

Application start date

This will come into effect for fiscal years beginning on or after April 1, 2026.

If a fiscal year is considered to be 12 months, the earliest the reporting obligation will arise is the fiscal year ending March 2027.

However, this does not apply if the fiscal year end is changed.
(For example, if a corporation with a July fiscal year end changes to a December fiscal year end in 2026, the reporting obligation will arise in the fiscal year ending December 2026.)

Tax paid

It is calculated using the following formula.

Defense special corporate tax: (Standard corporate tax amount - 5 million yen) x 4%

The standard corporate tax amount is the amount of corporate tax before applying certain tax deductions such as income tax credits and foreign tax credits.

The key point is that the standard is the amount of corporate tax, not the amount of income.

In addition, 5 million yen is deducted from that amount, so tax is due when the standard corporate tax amount exceeds 5 million yen.

As a result, many small and medium-sized corporations will pay 0 yen in tax.

Points to note

Even if the amount of defense special corporate tax to be paid is zero, you will still need to submit a tax return.

Schedule 1 of the corporate tax return will increase from the current two pages to three.

Note that if the deadline for filing the corporate tax return has been extended, the deadline for filing the defense special corporate tax will also be extended.

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都築太郎税理士事務所/Tsuzuki Taro Tax Accountant Office

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