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…


Regarding Shelf Companies in Japan

What is shelf company? A company already registered and which can be taken over immediately for carrying out business activities is called a shelf company. ★ Explanation ★ A company already registered and which can be taken over immediately for carrying out business activities is called a shelf company. A shelf company is also called…


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…


Acquisitions of Companies in Japan

Since Abenomics was launched in 2013, Prime Minister Shinzo Abe’s economic policies represented by monetary easing, fiscal stimulus, and structural reforms, the Japanese economy was revived from Japan’s so-called ‘lost decades’ and millions of jobs were created. Along with the economic recovery, M&A activities have increased year-on-year for the past eight years since 2012. This…


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…


About Permits and Licenses

I heard that there are businesses in Japan that require government licenses. What are these documents? A government license refers to documentation issued by administrative bodies such as the police station, health center, prefectural government, etc., which is a requirement to be able to operate specific kinds of businesses. ★ Explanation ★ 1. Government licenses…


Social Security Agreements

Tell me about “social security agreements”. For foreign nationals transferring employment to Japan, there is a need to register under the social security systems both their of country of origin and Japan. To eliminate dual social security transactions, countries enter into what are called “social security agreements” with each other. ★ Explanation ★ 1. Defining…


Procedures for Labor Insurance (Worker’s Accident Insurance and Employment Insurance)

Please tell me about the procedure for labor insurance (workers’ accident insurance, employment insurance). When work injury insurance applies to the Japanese company or branch office, you will need to submit a notification for the establishment of work related to work injury insurance to the appropriate labor standards monitoring office. Afterwards, you need to report…