Notifications when Establishing Companies

● Necessary Reports to Tax Office etc. in connection with the establishment of a Corporation in Japan Report of Establishment of Corporation (National Tax, Local Tax) Reports regarding the establishment of the corporation (including the Japanese subsidiaries of foreign companies) must submitted to the competent tax office (national tax) and prefectural/ward/municipal tax offices (local tax)….


Tax Returns and Social Insurance Procedures for Corporations

● Tax Returns for Corporations 1. National Corporate Tax National corporate tax is imposed on the taxable income of a corporation. National corporate tax rates vary depending on the amount of capital of the corporation. The same applies among Japanese subsidiaries of foreign companies, foreign corporations, and Japanese branch of foreign corporations. ① For small…


Change in Officers’ Remuneration due to COVID-19

Introduction Due to the effects of the COVID-19 pandemic on the economy, many companies have resorted to reducing their officers’ remuneration to offset any decrease in sales, as well as to ensure that their other employees also remain stable. On the other hand, other companies have done the opposite, increasing their officers’ remuneration to compensate…


Tax Relief Measures Part of the Emergency Economic Measures in Response to COVID-19 ~Exceptions for Tax Report for Election of Consumption Taxpayer・Stamp Tax Exemption for Special Loan Contracts・Special Measures for Fixed Asset Tax, etc.~

Introduction On April 30, the Japanese government approved an emergency economic response plan to address the COVID-19 situation in Japan. Continuing from the previous article, we will look at the remaining tax relief measures. Specific details regarding tax relief measures under the emergency economic measures as response to COVID-19 Among the 12 tax measures under…


Outline of the FY 2020 Tax Reform

Introduction On December 12, 2019, the Outline of the FY 2020 (Reiwa 2) Tax Reform was released. Included in the Outline are tax reforms that come from different perspectives. Reforms with the goal of realizing sustainable economic growth in mind include measures on open-innovation activities, measures to encourage investments and wage increases, revisions to the…


The Individual Number Card: Now, and Beyond

Introduction The Individual Number System, which was introduced in October 2015, began later issuing the Individual Number Cards starting January the following year. In the span of four years since then, however, no more than 15% of Japan’s population has been issued their Individual Number Cards (as of November 2019 according to the Ministry of…


Reduced Consumption Tax Rates and the Point Reward Project for Cashless Payments

Introduction It has been quite some time already since Japan increased its consumption tax rates to 10% starting October 1, 2019. Together with the increase in tax rates is the introduction of the “Reduced Consumption Tax System” and the “Point Reward Project for Cashless Payments”. With these two new schemes, consumer’s purchasing patterns can vary,…


Advantages of tax system for SEMs in Japan

In Japan, companies are primarily determined according to the amount of invested capital funds as to whether they can be classified as SMEs (Small and medium-sized entities). A company established in Japan can benefit from a variety of tax-related procedures in the event it becomes a small and medium-size entity. Consequently, a company incorporated in…


Restoration Taxes in Japan

Restoration Tax or Surtax is an addition tax imposed on companies in order to recover from big natural disasters, help cover the costs of reconstruction. These days corporate tax rate was lowered by 35,64% and Government Tax Commission is discussing the further reduction of Japanese corporate tax. In addition to corporate tax reduction, in order…


Inhabitant Taxes in Japan

Today we will be addressing FAQs concerning inhabitant taxes in Japan. Q : Who is liable to pay inhabitant or residence tax? A : Inhabitant (or residence) taxes are paid in Japan only if you are a resident*. Nonresidents don’t need to pay this tax. *You don’t need to pay residence taxes if you are…