Overview of the Special Defense Corporate Tax

The Special Defense Corporate Tax will be applied as an additional tax equivalent to 4% of the corporate tax amount, as part of the funding for the increase in defense spending, starting from the business years that commence after April 1, 2026 (with interim declarations starting from fiscal year 2027).　 However, in consideration of small and medium-sized enterprises, 5 million yen will be deducted from the corporate tax amount that constitutes the tax base.

The special defense corporation tax, which imposes a reporting obligation on all corporations in principle.