Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
How is Japanese income tax calculated on a company director’s salary?
In Japan, income tax on a director’s salary is calculated after taking into account factors such as the employment income deduction and applicable income deductions.
The amount of the director’s compensation can also affect the company’s corporate tax and social insurance costs, so it is an important consideration when planning the finances of a company in Japan.
The System of Individual Income Tax in Japan: For Salaried Individuals