Transfer of Privately-owned Real Estate to a Corporation

Are there any tax benefits when ownership of personal property is transferred to corporate ownership? You may be able to enjoy tax saving benefits due to the difference in tax rates between individuals and corporations. ★ Explanation ★ In Japan, the effective income tax rate for corporate entities in Japan is approximately 30%. On the…


Due Date of Corporate Taxes Etc.

Please tell me about the filing schedule for a Japanese corporation’s corporate taxes, etc. Corporate tax, corporate business tax, corporate resident tax, consumption tax and establishment tax are due two months after the closing date. In addition, the filing deadline for corporate tax, corporate business tax and corporate resident tax can be extended for one…


Residents and Nonresidents

Tell me about the “residents” and “nonresident” statuses in Japan. In terms of Japan’s Income Tax Act, a “resident” is an individual who has a domicile or has had a residence continuously for one year or more in Japan. Those who do not satisfy the definition given for “residents” is considered a “nonresident”. ★ Explanation…


Summary of the Tax Treaty

Please tell me about the tax treaty. And what countries have Japan entered into tax treaties with? The tax treaty is a treaty relating to taxation with the purpose of contributing to the promotion of a sound investment-economic exchange between two countries through the adjustment of double taxation and tax evasion and measures against tax…


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…