Are Training Costs for the President Deductible? Tax Knowledge for Foreigners Starting Businesses in Japan
【Koshida Accounting Firm Column Date:】
Hi, my name is Taisei Koshida. I am a certified public accountant and a tax accountant.
I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.
This blog may help if you are unclear about training costs for the president in Japan.
Last night, I attended a barbecue party at a restaurant owned by a member of the business meetup group I’m part of. During the event, a fellow member asked if the training costs that the president (referring to himself) incurs are considered deductible expenses.
Business Relevance
One of the major criteria is whether an expense is directly related to the business. For instance, I attend English conversation classes. Given that my accounting firm actively supports English-speaking foreign entrepreneurs in Japan, this is seen as highly relevant to my business. Conversely, attending investment seminars on topics like Bitcoin not be considered deductible since their relevance to the business is minimal.
Reasonableness of the Amount
The reasonableness of the expense amount is essential for deductions. If the cost is significantly higher than similar seminars, it may be disapproved during tax audits.
Lesson Fees for National Licenses like Lawyers and Tax Accountants
It is often said that tax officers reject these deductions as they are strongly tied to individuality.
Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.