1. Corporate tax etc.

Japanese tax system for corporate income is very complicated. A summary of types of corporate income taxes charged to corporate income is as follows:

•Corporate Income Tax (National)

•Local Corporation Tax (Local)

•Inhabitants Tax (Local-Prefectural, Municipal)

•Enterprise Tax (Local)

•Special Local Corporation Tax (Local)

Tax rate of “Corporate Income Tax (National)” is 23.9% from first fiscal year beginning on or after April 1, 2015.

For example, if a company with the capital amount of 10 Million JPY is set up located in Tokyo after April 1, 2015, the applicable “effective tax rate” is varying from 22.01% to 35.35% depending on amount of taxable income, due to progressive tax rate system.

Annual tax filing due date for above corporate income taxes is 2 months after the end of final year. 1 month extension is allowed, if the company files the application for the extension for due date.

2. Consumption Tax

Consumption tax is levied on sales transaction effectuated in Japan. Sales of products, provision of services, transfer of machinery, buildings and other business assets in Japan are also subject to consumption tax.

Consumption taxes on taxable sales －Consumption taxes on taxable purchase = Payable Consumption Taxes

Consumption tax rate is 8% at the moment. Annual tax filing due date for Consumption Tax is 2 months after the end of fiscal year. Extension of due date is not allowed.