Can Business Setup Costs Be Deducted as Expenses in Japan?

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

When you start a business in Japan, many costs must be generated, such as travel fees, visa-related fees, office rent-related fees, etc. Are these considered expenses for tax purposes in Japan?

1. Relevance to business

All expenses related to your business can be considered expenses within common sense for tax purposes in Japan.

2. How and when to deduct

Those expenses are considered carrying over assets for tax purposes. Then, you can deduct them whenever you like. Since less profit is often made while starting up, you can keep it as an asset until enough profit is generated. Therefore, it helps keep your business figures black.

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