International Tax Accountant in Osaka, Japan

International Tax and Accounting Services in English

Koshida Accounting and Tax Office provides international tax and accounting services in Osaka, Japan, with support available in English.

The firm assists foreign individuals, entrepreneurs, and business owners with Japanese tax matters involving overseas income, foreign assets, cross-border transactions, and businesses operating between Japan and other countries.

Japanese tax treatment does not always follow the treatment in another country. Depending on the circumstances, relevant factors may include Japanese tax residency status, the source of income, remittances to Japan, foreign taxes paid, and applicable tax treaty provisions.

As a Certified Public Accountant and Licensed Tax Accountant in Japan, Taisei Koshida provides advice on the Japanese tax treatment of these matters and assists with the necessary Japanese tax filings.

International Tax Services for Individuals

Living in Japan can create Japanese tax obligations even when income or assets remain overseas.

Services for foreign residents include:

  • Japanese income tax returns
  • Non-Permanent Resident taxation
  • Remittance-Based Taxation
  • Overseas salary and other foreign income
  • Foreign dividends and interest
  • Capital gains on overseas securities
  • Overseas rental income
  • Foreign Tax Credits
  • Foreign Asset Reporting
  • Statement of Assets and Liabilities
  • U.S. Social Security and other foreign pensions
  • Traditional IRAs and Roth IRAs
  • 401(k) distributions
  • Tax issues when moving to or leaving Japan

Receiving income in a foreign bank or brokerage account does not by itself mean that the income is outside the scope of Japanese taxation.

The Japanese tax treatment depends on factors such as the type and source of income, tax residency status, and, in some cases, remittances to Japan.

U.S.-Japan Tax Issues

Koshida Accounting and Tax Office handles Japanese tax matters involving income and assets in the United States.

Common issues include:

  • U.S. stocks and capital gains
  • U.S. rental properties
  • U.S. LLCs
  • Traditional IRAs and Roth IRAs
  • IRA conversions
  • 401(k)s
  • U.S. Social Security
  • Foreign Tax Credits
  • Japanese taxation of U.S. income
  • Remittances from the United States to Japan

Japan and the United States do not always classify income, retirement arrangements, or business entities in the same way. The treatment shown on a U.S. tax return therefore cannot necessarily be applied directly to a Japanese tax return.

For an overview of these issues, see:

Moving to Japan? How Your U.S. Income Is Taxed in Japan

International Tax for Entrepreneurs and Business Owners

Cross-border tax issues can arise when a person living in Japan operates a business or company involving another country.

Services for foreign entrepreneurs and business owners include:

  • Japanese accounting and corporate tax compliance
  • Transactions between Japanese and overseas businesses
  • Foreign companies conducting business in Japan
  • U.S. LLCs operated by residents of Japan
  • Permanent Establishment (PE) issues
  • Transfer pricing considerations
  • Foreign Tax Credits and double taxation
  • Japanese tax issues arising from cross-border business activities

The place of incorporation or location of a bank account does not by itself determine the Japanese tax treatment of cross-border business activities.

For example, a company established outside Japan may still have Japanese tax issues depending on its activities and circumstances.

U.S. LLC Owners Living in Japan

U.S. LLCs can involve complex Japanese tax issues because Japan and the United States may treat an LLC differently for tax purposes.

Depending on the circumstances, relevant issues may include:

  • Classification of the LLC for Japanese tax purposes
  • Japanese tax treatment of compensation and distributions
  • Permanent Establishment (PE) risk
  • Foreign Tax Credits
  • Remittance-Based Taxation
  • Transactions between the LLC and a Japanese company
  • Transfer pricing

For more information, see:

U.S. LLC Taxation in Japan: PE Risk, Foreign Tax Credits, and Remittance Rules

Non-Permanent Residents and Remittance-Based Taxation

Foreign nationals who become tax residents of Japan may qualify as Non-Permanent Residents for Japanese income tax purposes during part of their first years in Japan.

Non-Permanent Resident status can significantly affect the Japanese taxation of certain foreign-source income.

Remittances to Japan can also affect the amount of foreign-source income subject to Japanese taxation.

Relevant factors include residence history, the type and source of foreign income, where the income was paid, and remittances to Japan.

For more information, see:

Non-Permanent Resident Tax Rules in Japan: What Foreign Residents Should Know

and

What Happens to Your Japanese Taxes After Living in Japan for 5 Years? A Guide for Americans

Foreign Tax Credits and Double Taxation

When the same income is taxed in Japan and another country, a Foreign Tax Credit may be available to reduce double taxation.

However, paying tax overseas does not automatically mean that the entire foreign tax can be credited against Japanese income tax.

The calculation may depend on:

  • The source and type of income
  • Whether the income is taxable in Japan
  • Who is legally liable for the foreign tax
  • The amount and timing of the foreign tax paid
  • Japanese Foreign Tax Credit limitations
  • Applicable tax treaty provisions
  • Remittance-Based Taxation for Non-Permanent Residents

For more information, see:

Foreign Tax Credit for Non-Permanent Residents in Japan

Handling International Tax Matters in Japan

The tax treatment shown on a foreign tax return does not necessarily determine the tax treatment in Japan.

Depending on the case, relevant information may include:

  • Residence history
  • Type and source of income
  • When income was earned and received
  • Acquisition and sale dates of assets
  • Remittances to Japan and other cross-border transfers of funds
  • Foreign taxes paid
  • Japanese and foreign tax documents

Based on the relevant facts, the Japanese tax treatment, applicable tax treaty provisions, and Japanese filing requirements are determined.

Direct Communication in English

Koshida Accounting and Tax Office is a small accounting firm in Osaka, and clients communicate directly with Taisei Koshida, a Japanese CPA and Licensed Tax Accountant.

Direct communication can be particularly important in cross-border cases, where differences in residence history, overseas income, remittances, investments, or business activities can affect the Japanese tax treatment.

Accounting and tax services are available in English.

Where a matter requires expertise outside Japanese accounting and taxation, the appropriate professional may be involved as necessary.

About Koshida Accounting and Tax Office

Taisei Koshida is a Certified Public Accountant and Licensed Tax Accountant in Japan with more than 25 years of professional experience in accounting and taxation.

Before establishing Koshida Accounting and Tax Office in 2008, he worked for Tohmatsu, now Deloitte Touche Tohmatsu LLC, for eight years in accounting, auditing, and corporate advisory services.

The firm assists foreign individuals, entrepreneurs, and businesses with Japanese accounting, taxation, and international tax matters.

The office is located in Chuo-ku, Osaka, and services are available in English.

International Tax Assistance in Japan

If you live in Japan, are planning to move to Japan, or operate a business involving Japan and another country, Koshida Accounting and Tax Office can assist with the Japanese tax issues involved.

Please contact Koshida Accounting and Tax Office through the inquiry form.

English support is available.