Do corporations have to pay any tax even when they do not generate income?

Corporations engaged in economic activities in Japan are subject to taxes in Japan on the profits generated by those economic activities. Even if there are no taxable income/profits, corporate inhabitant taxes are levied not only on income but also on a per capita basis using the corporation’s capital and the number of its employees as the tax base. Corporations having paid-in capital of more than 100 million yen are subject to enterprise tax on a pro forma basis.