Whether to make your home a branch office?
If you start your own business at your home and office, your home will be your head office.
If you rent an office and use it as your head office, do you want to make your home a branch office?
- Expense your home rent
- Expense your home utility bill
- Expense what you bought at home
It seems that you will receive some benefits if you make it a branch office, but what about the actual situation?
Extra tax will be charged if you open a branch
Corporate inhabitant tax
Corporate inhabitant tax includes corporate prefectural tax and corporate municipal tax.
Corporate prefectural tax is a tax paid to prefectures, and corporate municipal tax is a tax paid to municipalities.
Per Income basis and Per Capital Basis
There are two types of corporate municipal tax, per income basis and per capital basis.
The per income basis is calculated by multiplying the corporate tax (national tax) paid to the country by the tax rate if it is in the black.
Since the tax rate is applied, the amount varies depending on the amount of corporate tax.
If you make a lot of money, per income basis will increase accordingly.
On the other hand, per capital basis is a fixed amount.
If the head office and branch offices are located in different cities, towns and villages will be charged a per capita rate.
Assuming that the company has an office (head office) in Osaka City and a home (branch office) in Toyonaka City with a capital of 10 million yen or less and a single president.
- 50,000 yen for Osaka city
- 60,000 yen for Toyonaka City
You will pay the per capita rate.
The per income basis is proportionally divided by the number of months, so if it is the first year, it will be calculated according to the number of months.
Taxes to pay
If the branch is an office, you pay both the per Income basis and per capital basis, but if the branch is a dormitory, you only pay the per capita rate.
If you try to include the expenses for your home with a branch office, you will be charged a per income basis and per capital basis.
Even if the dormitory is not engaged in business activities, per capital basis will be applied.
If the sales are moderate at both the head office and the branch office, you probably don’t have to worry about the per capital basis.
However, the per capital basis is a tax paid even if it is in the red.
If you are a corporation of an individual scale, the tax of 100,000 yen in total will be a burden.
Withdrawal of branch establishment notification
The corporate municipal tax return is sent from the municipality that submitted the establishment notification when the corporation was created.
If you submit only the head office, you will only receive it from the municipality under the jurisdiction of the head office.
What if you want to make your home a branch office and submit it to the municipality under the jurisdiction of the branch office and cancel it later?
Although it was delivered, it is not engaged in business activities and is not used as a dormitory.
Whether to submit a withdrawal letter (for submission / copy) with the words such as, or to tell by phone.
Compared to national taxes (tax offices), local taxes (prefectures and municipalities) are more flexible.