Frequently Asked Questions

Can I change a director's compensation during the fiscal year in Japan?

You can change a director’s compensation during the fiscal year, but the tax treatment requires careful consideration.

Under Japanese corporate tax rules, a change made outside the permitted conditions may result in part of the director’s compensation becoming non-deductible for corporate tax purposes.

For this reason, the amount and timing of director’s compensation are important parts of corporate tax planning in Japan.

When Launching a Company in Japan, Determining the Director’s Compensation Amount is Crucial