” The strongest principle of growth lies in the human choice. “― George Eliot
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.
In Japan, it’s uncommon for unlisted small businesses to pay dividends. However, there are cases where dividends may be suitable. We’ll explore each point in detail.
日本では、非上場会社の中小企業が配当金を出すケースはめったにありません。しかし、場合によっては配当がフィットする場合もあり得ます。
以下では、各論点ごとに検討していきます。
１．Are They Deductible as Company Expenses? 法人の経費になるか？
The source of dividends is the net profit after corporate tax, so they are not deductible. In contrast, executive compensation is deductible. The corporate tax rate is 22% for profits up to 4 million yen, 24% for profits up to 8 million yen, and 34% for profits exceeding 8 million yen.
配当は、法人税を課税された後の税引後利益が原資になるので、法人の経費にはなりません。一方で、役員報酬は法人の経費になります。法人税率は、利益が4百万円までは22%、8百万円までは24％、8百万円を超えると34%です。
２．Individual Income Tax 個人の所得税
If you opt for separated taxation, individual income tax is essentially a 20% withholding tax. Additionally, municipal tax is levied based on income. However, for taxable incomes below 7 to 9 million yen, it’s often more advantageous to choose general taxation, which includes other income types such as salaries. This is taxed at rates ranging from 5% to 45%, in addition to a flat 10% municipal tax.
Executive compensation is only subject to general taxation.
分離課税を選択するならば、所得税は約20％の源泉控除で完結します。別途住民税が所得に応じて課税されます。一方、課税所得金額が７～９百万円以下の場合では、給与などの他の所得と合算した総合課税を選択したほうが有利になるケースが多いです。所得税で所得に応じて5％から45％、それに10％の住民税がかかります。
役員報酬は、総合課税のみとなります。
３. Are Dividends and Executive Compensation Subject to Social Insurance? 社会保険の対象になるか
Dividends are not subject to social insurance. Conversely, executive compensation typically is. Both individuals and companies contribute approximately 15% of the gross executive compensation amount. However, if the degree of management involvement is low, the time devoted is minimal, and the executive compensation is modest, such as a few hundred thousand yen, then enrollment in social insurance may not be required.
配当は社会保険の対象になりません。一方で、役員報酬は原則として社会保険の対象となります。会社と個人がそれぞれ役員報酬の額面額の約15％を負担します。ただし、経営への関与度合いが低く、提供している時間も少なく、役員報酬も数十万円程度以下ならば、社会保険に加入しなくても良いケースもあります。
４．Individual Tax Exemption and Income Deduction for Executives and Dividends 個人の税額もしくは所得控除
When paying executive compensation, it qualifies for a salary income deduction, which increases with the amount of compensation, up to a maximum of approximately 2 million yen.
役員報酬には、給与所得控除があります。報酬の額に応じて増えますが、約2百万円が上限になります。
For more details on salary income deductions, please refer to this blog post.
給与所得控除についてはこちらのブログに詳細があります。
The System of Individual Income Tax in Japan: For Salaried Individuals
Conversely, dividends are eligible for tax exemptions. When the total taxable income is below 10 million yen, 10% of the dividend income is exempt from tax. For amounts exceeding 10 million yen, the exemption rate is 5%. The applicable municipal tax rate for dividend exemptions is uniformly 2.8%.
一方、配当については配当の税額控除があります。
課税総所得金額が1千万円以下の場合、配当所得の金額の10％が税額から控除されます。1千万円を超える部分については5％となります。住民税の配当控除の率は一律2.8%となります。
５．Is Dual Employment Legal While Receiving Executive Compensation? 勤め先の兼業義務に反しないか
If a person receiving executive compensation works for another company, it’s crucial to ensure that their primary employer permits dual employment. This is important because the fact that they are working for another company might become known through the document of municipal tax.
役員報酬か配当を受ける人が、他の会社で働いているならば、その会社で兼業が許されているかどうかは重要です。なぜなら、役員報酬を出すと働いている会社にそれがばれる可能性があるからです。
When working for two companies, typically, the primary employer withholds the total municipal tax, including income from the other company. This can lead to the secondary employment being known to the primary employer. If such a situation could cause issues, opting for dividends might be a more suitable alternative.
2か所で務めている場合は、住民税は基本的にメインの会社で2社合算の合計の額が源泉控除されます。そのため、メインの会社に副業がばれる可能性があるのです。
ですので、メインの会社に他の会社から役員報酬をもらっていることがばれると困る場合には、配当がフィットする可能性があります。
６．Filing Individual Tax Returns for Dividend Exemption 個人の確定申告
To apply for dividend exemption, individual tax returns are necessary. In contrast, executive compensation is typically settled through the year-end tax adjustment by the company.
配当控除を受けるためには、個人で確定申告する必要があります。一方、役員報酬の場合は会社が行う年末調整で完結します。
７．Withholding Income Tax on Dividends and Executive Compensation in Corporations 法人での源泉所得税の控除
For both dividends and executive compensation, companies withhold income tax. There’s a uniform 20% rate for dividends, while the withheld tax amount varies depending on the executive compensation.
共に法人で源泉徴収がなされます。配当の場合は一律約20％、役員報酬の場合は金額に応じで源泉の額が変わります。
８．The Necessity of Issuing Dividends Based on the Number of Shares Held 持ち株数に応じて配当する必要性
If your company pays dividends, they must be distributed equitably based on the number of shares held. Therefore, if you prefer not to issue dividends to a particular shareholder, you cannot choose to pay dividends, except by issuing a special class of shares.
配当をする場合には、持ち株数に応じて公平に行う必要があります。そのため、もしも特定の株主に配当したくない場合には、配当という方法を取ることができません。特殊株を発行している場合を除いて。
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