The implementation of a proposed "pro forma standard tax" would oblige red-ink companies that have been exempt from tax to pay an average of 1.79 million yen every year, four industry bodies said Wednesday.
Even among firms that have managed to post profits amid the slumping economy, only 15.5 percent would benefit from the tax scheme -- with the size of their cuts eclipsing that of tax increases, according to a poll of member firms by the four groups.
Under the pro forma standard, corporate tax is levied on the basis of such nonprofit factors as the number of employees, combined wages and the size of capital. The method allows tax to be collected from companies that are operating in the red.