Comprehensive Guide to Taxes and Business Startup in Japan

Below are the tax and accounting matters you should know or decide upon when starting a business in Japan.

1. For All Business Operators In Japan

■Consumption Taxes

• ・What you should minimally know about consumption taxes
  https://kotsicpafirm.com/an-easy-explanation-of-consumption-tax-for-doing-business-in-japan/
• ・Will you register with the invoice business?
  https://kotsicpafirm.com/an-easy-explanation-of-japans-invoice-system/
• ・Will you opt for the simplified consumption tax system?
  https://kotsicpafirm.com/understanding-japanese-consumption-taxes-simplified-consumption-tax-system/

■The Obligation of Keeping Ledgers and Documents(資料保存義務)

• ・Seven-year record-keeping obligation（7年保存義務)
  https://kotsicpafirm.com/what-happens-in-japanese-tax-audits-if-you-discard-ledgers-and-documents/
• ・The Electronic Record-Keeping Law(電子帳簿保存法)
  https://kotsicpafirm.com/how-to-comply-with-the-electronic-record-keeping-law-in-japan/

■Blue-Form Tax Return system(青色申告制度）

• https://kotsicpafirm.com/filing-tax-returns-in-japan-importance-of-blue-form-submission-and-deadline-compliance/

■Tax Saving（節税）

• ・Mutual funds(小規模共済等)
  https://kotsicpafirm.com/effective-ways-to-save-taxes-when-running-a-business-in-japan/

■Renewal of Management Visas

• https://kotsicpafirm.com/business-continuity-during-the-renewal-of-management-visas-in-japan/

■Social Insurance（社会保険）

• ・You are obligated to enroll in social insurance.
  https://kotsicpafirm.com/do-foreigners-need-to-join-social-insurance-when-launching-a-business-solo-in-japan/

■ Other Things You Should Know

• ・Year-end tax adjustment(年末調整）
  span>https://kotsicpafirm.com/understanding-japanese-taxes-year-end-tax-adjustment/
• ・Withholding individual income taxes
  https://kotsicpafirm.com/understanding-taxes-when-starting-a-business-in-japan-withholding-individual-income-taxes/
• ・Property tax
  https://kotsicpafirm.com/essential-tax-information-when-starting-a-business-in-japan-property-taxes/
• ・Remittance taxation
  https://kotsicpafirm.com/what-should-you-be-careful-about-regarding-taxation-when-a-non-resident-becomes-a-non-permanent-resident-in-japan/
• ・Incorporation
  https://kotsicpafirm.com/what-are-the-advantages-of-incorporation-for-proprietors-in-japan/
• ・Individual tax status (個人課税ステータス)
  https://kotsicpafirm.com/what-should-you-be-careful-about-regarding-taxation-when-a-non-resident-becomes-a-non-permanent-resident-in-japan/
  https://kotsicpafirm.com/what-should-you-be-careful-about-regarding-taxation-when-a-non-resident-becomes-a-non-permanent-resident-in-japan/

2. If You Establish a Corporation

■Corporation Tax Rate

• Corporate Taxes Rate in Japan

■What You Should Decide Upon

• ・How much will your company’s paid-in capital be?（資本金の額）
  https://kotsicpafirm.com/how-much-should-the-paid-in-capital-be-when-you-establish-a-corporation-in-japan/
• ・When will you set the end of the fiscal year?（決算月）
  https://kotsicpafirm.com/when-establishing-a-company-in-japan-which-month-should-you-set-as-the-fiscal-year-end/
  https://kotsicpafirm.com/how-the-tax-office-selects-audit-targets-in-japan/
• ・How much will the executive compensation be?（役員報酬）
  https://kotsicpafirm.com/under-japanese-tax-law-directors-compensatios-must-be-the-same-each-month/
  https://kotsicpafirm.com/when-launching-a-company-in-japan-determining-the-directors-compensation-amount-is-crucial/

■Tax Saving（節税）

• ・Company house and travel allowance(役員社宅や日当)
  https://kotsicpafirm.com/effective-ways-to-save-taxes-when-running-a-business-in-japan-part2/

■ Other Things You Should Know

• ・Per capital levy(均等割り)
  https://kotsicpafirm.com/establishing-corporations-in-japan-understanding-the-per-capita-levy-even-in-deficit/
• ・The system of individual tax in Japan for salaried individuals
  https://kotsicpafirm.com/the-system-of-individual-income-tax-in-japan-for-salaried-individuals/
• ・Required documents for corporate tax filing in Japan
  https://kotsicpafirm.com/required-documents-for-corporate-tax-filing-in-japan/