Setting Up a Business in Japan? A Guide to Japanese Taxes for Entrepreneurs
Japan is recognized as one of the most vibrant economies globally, presenting outstanding opportunities for entrepreneurs, startups, and international investors. However, prior to embarking on your business venture, it is essential to comprehend the country’s taxation framework. This Guide to Japanese Taxes will assist you in navigating the fundamentals — from corporate tax rates to consumption tax — and emphasize the advantages of collaborating with a Japan Tax Advisor to facilitate a smoother and more compliant business establishment. 1. Comprehending the Japanese Tax Environment Japan possesses a well-organized and transparent taxation system that is applicable to both domestic and international enterprises. The key taxes that entrepreneurs should take into account include: • Corporate Income Tax – Imposed on company profits, with the combined national and local taxes ranging from approximately 30% to 34%. • Consumption Tax (akin to VAT) – Currently established at 10...