Koshida Accounting and Tax Office

 Japan is recognized as one of the largest economies globally, presenting significant opportunities for both local and international enterprises. However, navigating the corporate tax framework in the country can be intricate, particularly for businesses that are not accustomed to its stringent regulations and reporting requirements.  This is where the expertise of an Accounting Firm in Japan proves to be essential. By utilizing professional Accounting and Tax Services in Japan, companies can alleviate tax liabilities, ensure adherence to regulations, and ultimately achieve cost savings. Understanding Japanese Corporate Tax Japan levies corporate tax on both domestic and international firms operating within its borders. The overall corporate tax rate generally encompasses national, local, and enterprise taxes, which collectively can result in an effective tax rate that is higher than in certain other areas.  Strategic Tax Planning One of the primary advantages of collabo...

 Comprehending how taxes work in Japan can be complex, specifically for non-residents or recently moved immigrants. One common question is: Can foreigners declare deductions or get a refund on their Japanese tax return?  The brief answer is yes-- under specific conditions, Income Tax in Japan for Foreigners can minimize their taxable earnings and even receive refunds. This short article uses a helpful guide to Japanese taxes for foreign nationals. Comprehending Income Tax in Japan for Foreigners Earnings tax in Japan for immigrants depends on your residency status. There are three classifications: • Non-residents (remain less than 1 year). • Non-permanent locals (stay more than 1 year, however, under 5 years). • Long-term citizens (stay 5+ years or those with permanent residency). • Tax responsibilities and deduction eligibility differ depending upon your classification. Declaring Deductions: What Foreigners Should Know. If you are employed in Japan and have lived the...

 An insight into Japan's Consumption Tax is an essential resource for any business that has a presence in the country. Japan currently applies a 10 percent consumption tax to most goods and services, a reduced rate of 8 percent to some food and beverage items, and to newspapers. This tax is comparable to VAT in other countries and is an important aspect of business in Japan.  Not only domestic companies but also overseas firms are required to comply with such a tax system; it is crucial to learn the route to navigate through this tax system for both legal compliance and financial planning. A business in Japan must file for consumption tax as an obligation if the value of its taxable sales in the base period (ca. Previous 2 years) was above JPY 10 million. Once registered, businesses are required to submit consumption tax returns annually, but some are required to do so quarterly or monthly, depending on their turnover. This is where professional Accounting and Tax Services in ...

 Expatriates, business clerks and foreign investors commonly travel to Japan. However, in Japan, the process of Income Tax taxation for Foreigners can be complicated due to classification and tax obligations based on residence. If you are a short-term resident or long-term expatriate, you need to understand Japan’s income tax system, as the consequences of penalties and compliance can be severe. On this page, let’s define the basics of Income Tax in Japan for Foreigners , the filing process and give you a few tips on getting your Income Tax Return done right in Japan. Which Types of Income Taxes People Pay in Japan? Working foreigners or foreigners earning income in Japan are taxed according to their residency status. There are three broad categories of taxpayers in Japan: 1. Non-Resident (Under 1 Year in Japan) 2. Taxed on only income sourced in Japan. 3. Foreign income does not need to be reported. 4. Resident (1 Year ≤ 5 Years) Taxed income derived from Japan and on cert...

 Preparing an income tax return in Japan can be overwhelming, particularly if you are new to the country and are considered a non-resident in Japan. Knowing who has to file and when is crucial in remaining in compliance and ensuring that penalties are not incurred.  If you're a full-time resident, part-time employee, or expat, this guide will help you sort out what you need to know in order to file taxes in Japan. Resident vs. Non-Resident: What’s the Difference and Who Cares? There are three classifications of taxpayers in Japan: non-residents, non-permanent residents, and permanent residents. The way you earn your money is also heavily impacted by your residency status. • Non-residents (individuals residing in Japan for one year or less) are taxed only on income from sources within Japan. • Nonresidents (people who lived in Japan for less than 5 years) are only taxed on Japanese-source income and the foreign income that is remitted to Japan. • Residents (those living i...

 It is important that businesses and individuals understand Japan’s tax system so that they can remain compliant and maximize tax liabilities. Whether you are running a business or living as an expatriate, an Accounting Firm in Japan will guide you through the complexities of Accounting and Tax Services in Japan . Below is a summary of the primary types of taxes imposed in Japan. Corporate Income Tax The Corporate Income Tax applies to all businesses in Japan. The rate varies depending on the company’s taxable income but normally falls between 23.2% and 30%. However, smaller businesses may qualify for lower rates. Local Enterprise Tax Local office building tax: The prefectural government levies income, capital, and the value-added component of a company. The applicable tax rate differs per region and the size of the business. Corporate Inhabitant Tax In addition to the above, Companies are required to pay a Corporate Inhabitant Tax, which is based on a fixed per capita levy, as wel...