Osaka Prefecture to raise corporate tax.OSAKA, March 22 Kyodo
The Osaka prefectural pre·fec·ture
1. The district administered or governed by a prefect.
2. The office or authority of a prefect.
3. The residence or housing of a prefect. assembly approved a bill on Friday to raise local corporate tax for a three-year period in a bid to stem swelling deficits in prefectural finances.
The measure, approved by the Osaka assembly in a vote in the early hours Friday, would raise the amount of capitalization tax paid by Osaka-based companies capitalized above 10 million yen -- currently assessed in five ranks between 20,000 yen and 800,000 yen by 50% to 100%.
The Osaka prefectural government, which runs an annual deficit of about 500 billion yen, hopes the measure would raise 5 billion yen in extra revenues a year over the three-year period.
The tax hike, which takes effect April 1, is expected to affect 60,000 Osaka-based companies.
Osaka prefectural officials said the prefecture plans to spend the extra revenue to promote start-up businesses in the prefecture.
The taxation ordinance A law, statute, or regulation enacted by a Municipal Corporation.
An ordinance is a law passed by a municipal government. A municipality, such as a city, town, village, or borough, is a political subdivision of a state within which a municipal corporation has been raises the capitalization tax paid by companies capitalized between 10 million yen and 100 million yen by 50% and that for companies capitalized above 100 million yen by 100%.
The capitalization tax is levied irrespective of irrespective of
Without consideration of; regardless of.
preposition despite the company's bottom line. Apart from the capitalization tax, Osaka Prefecture This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.
You can assist by [ editing it] now. also levies a local corporate tax that is assessed on the size of company earnings.
Osaka Prefecture, one of the most heavily indebted in·debt·ed
Morally, socially, or legally obligated to another; beholden.
[Middle English endetted, from Old French endette, past participle of endetter, to oblige local authorities in the nation, may fall under fiscal supervision by central government by fiscal 2006 unless there is significant improvement in local finances.
To avert compulsory restructuring, which could force major cuts in local welfare outlays Outlays
Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. , the Osaka government has sought to trim government expenses while raising corporate tax.
Last May, the Osaka prefectural government imposed a 3% tax on the gross operating profits Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
See operating income. of financial institutions operating locally with funds totaling over 5 trillion yen for five years from fiscal 2001.
To trim government expenses, Osaka Gov. Fusae Ota has vowed to reduce the size of the prefecture's payroll by 20% over 10 years beginning in fiscal 2003.