002 Impact on Special Application for SME due to Revision of Group Corporation Tax Act
Revisions of Group Corporation Tax Act are currently being prepared. One of them is related to Special Application by Small and Medium Enterprises (SME). Today’s act allows this Special Application for SME to be applied by corporations whose shareholder’s equity is not greater than 100 million yen, and applicants are benefited from five special treatments such as reduced tax rate. However, after this revision in effect from 1st April 2010, these corporations mentioned above will not be allowed to have an access to the Special Application for SME if they are subsidiaries wholly owned by a parent company whose shareholder’s equity is not less than 500 million yen.
Therefore, you would like to pay attention to whether your fit this case.
