Frequently Asked Questions
What is the Invoice System in Japan?
The Invoice System in Japan is similar to VAT systems worldwide. It determines the rule for deducting paid consumption taxes from received taxes. Taxpayers must pay this remnant as consumption taxes. If you want to know more about that, please refer to the blog.
In Japan, many specialists exist, such as lawyers, tax accountants, and administrative scriveners. Why?
In Japan, each ministry and other government agencies control each specialist who has a national license. Taxation specialists are tax accountants, visa specialists are administrative specialists, registration specialists are judicial specialists, and so on. If you’d like to know more about that, please take a look at the blog.
I hear there is the Electronic Record-Keeping Law in Japan. What is it like?
The Electronic Record-Keeping Law in Japan rules how electronic documents related to taxation should be kept. It is not so severe for small businesses. If you’d like to know more about this, please take a look at the blog.
How to Comply with the Electronic Record Keeping Law in Japan?
Can I leave preparing an accounting book to your accounting office?
Basically, clients prepare primitive information, such as the electrical data of bankbooks and credit cards, and then our office prepares accounting books. We usually request that clients input essential data in Excel, such as receipts. If you request us to enter those data into books by hand, we request additional fees.
What is the corporate tax rate in Japan?
Japanese corporate tax rate is around 30% including local taxations. If you want to know more about it, please refer to the blog.
Is there VAT in Japan?
In Japan, VAT is called a consumption tax; the tax rate is 10%, except for food and drink. This Japanese consumption tax is very complex, which is the biggest cause of trouble between businesses and accounting offices. If you want to know more about it, please refer to the blog.
An Easy Explanation of Consumption Tax for Doing Business in Japan
How are tax audits positioned in Japan?
The Japanese income tax system, including corporation taxes, depends on taxpayers filing tax returns. Therefore, it is common that tax audits are conducted to confirm the correctness of tax filings except for one part of dishonest taxpayers. In a way, you should not worried about a tax audit so much in Japan. If you want to know more about Japanese tax audits, please refer to the blog.
I heard I can not change directors fees in the middle of the fiscal year in Japan. Is that correct?
You can change your directors’ fees. However, the changed portions are not considered expenses for tax purposes. If you want to know more about it, please refer to the blog.
When Launching a Company in Japan, Determining the Director’s Compensation Amount is Crucial
If I establish a company in Japan, when is the end month of the fiscal year?
In Japan, you can decide your company’s fiscal year-end month. For details, please see the blog.
When Establishing a Company in Japan, Which Month Should You Set as the Fiscal Year-End?
When selecting an accounting office in Japan, what should I consider?
You should select an accounting office that fits you and your business. Selecting a large accounting office may be better if your business is large. If it is rather small, a small accounting office may be fit for you. International taxation is not common for ordinary accounting offices. Also, the accounting office representative’s policy, personality, and thoughts are important. The offices that insist on only tax accuracy are not recommended because taxation is just part of management. While maintaining tax accuracy, our office advises you on several ways to choose for your business.
When foreign people run businesses in Japan, must they prepare accounting books in Japanese?
Yes. Preparing accounting books in Japanese is necessary because tax officers can properly conduct tax investigations.
If I leave the Japanese tax matter to you, will you do everything related to Japanese taxation?
Yes. Our office will handle almost everything related to Japanese taxation, such as submitting documents to a tax office or others, preparing an accounting book and tax returns, and doing tax planning, if you contract monthly advisory services with our office.
A Japanese tax office notified my company that they would conduct a tax audit. Can you measure against it and attend to it?
Yes. My office will hear about your company’s situation, and I will assist you if it is possible.
I am not sure I must file a tax return in Japan. If I consult with you about it, does it cost something?
It does not cost if the consulting takes around thirty minutes and the content is general.
I want to start a business in Japan while living outside Japan. Can you assist me?
Yes. I can assist you as a tax specialist. Besides, my office is a group member supporting foreign people and companies starting businesses in Japan. Therefore, I can introduce each specialist who is essential when starting a business in Japan.
Can you assist me in getting a Japanese management visa?
My accounting office can not assist you with it directly. However, we are a member of a group that assists foreign people or companies starting businesses in Japan and can, therefore, introduce you to a visa specialist.
Does your office assist me with past tax returns failing to file?
Yes. We hear your situation and assist with your past tax returns if needed.
Is incorporation neccessary when starting business in Japan?
You can start a business as a sole proprietor, but if you need a management visa, incorporation is a common option to obtain the visa smoothly. Therefore, when your spouse is Japanese, you can get a spouse visa, so there is no problem starting a business with a sole proprietor.
Can I file my tax return by myself in Japan?
Most Japanese sole proprietors whose businesses are not large, such as those with sales of a couple of million, file it themselves. On the other hand, most corporations leave it to a tax accountant because it is pretty complex.
Can I leave filing a tax return only one time to your office?
Yes. Our office accepts one-time transactions, such as individual tax returns for employees, the case they can be refunded their paid taxes.