The Impact of Incorrect Account Headings in Japanese Tax Audits

【Koshida Accounting Firm Column Date:

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


If you are unclear about treating account headings in Japanese tax audits, you might find this blog helpful.




Japanese Tax Officers Focus on Taxable Profits

During Japanese tax audits, officers seek to increase taxable profits by raising income or reducing expenses. If they deem it necessary, they can impose additional taxes. Consequently, the exact account headings are not their primary concern.


Using Account Headings Correctly to Understand Management Figures

However, to accurately grasp the state of your business, it’s recommended to properly apply account headings.



Our accounting firm has been actively assisting foreign business owners in Japan with accounting and tax matters. Please feel free to contact us through the inquiry form.