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Corporate Income Tax on Capital Gains from Transfer of Land

holding period: 2 years or less

holding period: 2 -- 5 years

holding period: more than 5 years

( -- 1997)
-Taxed at
the normal corporation tax rate + 15%

(1998 -- )
   - Additional 15% abolished

( -- 1997)
- Taxed at
the normal corporation tax rate + 10%

(1998 -- )
   - Additional 10% suspended

( -- 1997)
- Taxed at
the normal corporation tax rate + 5%

(1998 -- )
   - Additional 5% suspended

(Special deductions)
-Special deduction for the transfer of land for expropriation

50 million yen

-Special deduction for the transfer of land for designated land readjustment projects

20 million yen

-Special deduction for the transfer of land for designated residential land development projects

15 million yen

-Special deduction for the transfer of land for the rationalization of agricultural land holding

8 million yen

*

When transfer of land generates "business income" defined in individual income tax, similar additional taxes are imposed on individual business operators. The additional personal income taxes on capital gains from land of business operator were either abolished or suspended according to the length of holding period above.


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