Notes on Planning Tax Measures

What do I need to prepare or take note of regarding tax saving measures before establishing a company? It is important to be aware of the following: (1) capital amount, (2) fiscal year, and (3) establishment cost and start-up cost. ★ Explanation ★ 1. Capital Amount Although the amount of capital will be considered before…


How to Determine Executive Compensation

How should we determine how much would be our executive remuneration? Corporate tax, income tax, social insurance, residence renewal status, etc. must all be taken into consideration when deciding the amount for executive remuneration. ★ Explanation ★ 1. From a taxation standpoint (corporate tax and income tax) If the owner (100% shareholder) executive are not…


Corporate and Individual Tax Rates

What is the income tax rate for corporations and individuals in Japan? Corporate tax is approximately 30% under an effective tax rate base and personal income tax is around 0% to 55%. ★ Explanation ★ 1. Taxes on Corporate Taxable Income In Japan, taxes on corporate income are corporation tax, local corporation special tax, business…


Notifications to be Filed Upon Establishment

Please tell me what tax-related notifications should be submitted to the tax office(s) after incorporating a company or setting-up a branch in Japan. After setting-up a branch or company, you will need to submit the following documents, for example, to the tax office, prefectural tax office, and municipal office. <Tax Office> ・ Tax Report for…


Renewal Procedure for Business Manager Visa

Please tell me about the procedure for the renewal of the Business Manager visa. The Business Manager visa renewal process will look at the stability and going concern of your company to see if the continued issuance of the Business Manager is appropriate. ★ Explanation ★ The next important topic for foreign business owners who…


Relationship between Intra-Company and Business Manager

I will assume the position of representative for a Japanese subsidiary (branch) of a foreign company. In this case which visa should I apply for? If the activities to be conducted are those of a manager, apply for a “Business Manager” visa. If the activities are equivalent to liaison duties with the home country, apply…


Possibility of Approval of Joint Representative (2)

I established a company with my friend and applied for registration as an officer. The capital is 5 million yen, but can the both of us obtain Business Manager visas? It would be difficult for both to obtain Business Manager visas for a newly established company. There are exceptions but generally only one Business Manager…


Possibility of Approval of Joint Representative (1)

I established a trading company with my friend and we would both like to apply for a Business Manager visa. The capital totals 10 million yen, with both of us investing 5 million yen each. I specialize in foreign transactions such as customs clearance and import-export operations. My friend is in charge of quality control…