Article 143Tax Rate for a Foreign Corporation's Corporation Tax on Income for Each Business Year

①The amount of corporation tax imposed on a foreign corporation for income for each business year is to be the amount calculated by multiplying the amount of income categorized as domestic source income by a tax rate of 23.2 percent, for each category of the following domestic source income:

②In the case referred to in the preceding paragraph, with regard to the part of the amount that is eight million yen per annum or less out of the amount of income categorized as domestic source income of an ordinary corporation whose amount of stated capital or amount of capital contributions is 100 million yen or less at the end of each business year or which has no capital or investment at the end of each business year, or of an association or foundation without juridical personality, for each category of domestic source income listed in the items of that paragraph, the applicable tax rate is 19 percent, notwithstanding the provisions of the paragraph.

③With regard to the application of the preceding paragraph to a foreign corporation whose business year is less than one year, the phrase "amount that is eight million yen per annum" in the paragraph is deemed to be replaced with "amount that is calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the relevant business year."

④The number of months set forth in the preceding paragraph is calculated according to the calendar; a division of less than one month is counted as one month.

⑤The provisions of paragraph (2) do not apply to an ordinary corporation which is a foreign corporation and which falls under any of the following corporations as of the end of each business year: