Tax | Yurakucho CPA Office (Ginza, Tokyo, Japan)
Tax
Tax Services
We provide a various range of corporate tax services to you. If you start business in Japan and set up a Japanese company, please contact us. We are able to help you file corporate tax returns.
You may need other services depending on your needs. If so, please contact us. You can rely on our professional services.
Below is a quick summary that can help you understand corporate taxes relating to your company.
Corporate income tax
Corporate income tax is one of the most common taxes in Japan. Your company should file a tax return and make payments within two months after the end of each fiscal year. Tax payments are required if your company generated a profit. Under the Japanese corporate tax law, there are many rules about how the profit should be calculated. Generally, statutory accounting (to prepare B/S & P/L, etc.) and tax accounting (for tax calculation purpose) are not the same, so there should be some adjustments to statutory accounting to calculate corporate income tax properly.
Corporate inhabitant tax
Compared to corporate income tax, corporate inhabitant tax may not be very common. But it is important for a relatively new company because this tax should be paid even if your company made a loss or made no transaction during the fiscal year. Inhabitant tax is said to be fairly and widely imposed on a company. Tax amount can vary depending on company's size and its location, but the minimum amount is around JPY 70,000 per year.
Consumption tax
Japanese consumption tax (JCT) has a close relationship with daily life. If you buy foods, groceries, etc. at a supermarket, you pay JCT. This is similar to VAT (Value Added Tax) in other countries. Basically, companies need to pay JCT to the tax authority on behalf of consumers or others as JCT is an indirect tax. This needs to be done on an annual basis like corporate income tax.
Other taxes
In addition to the taxes above, there are other taxes that you should be aware of.
For example, if you have certain amount of fixed assets (PCs, desks, buildings, etc.), you need to pay fixed assets tax. You need to make a report about your fixed assets and send it to the tax authority before the payment.
Unfortunately, Japanese tax authority may not tell you what kind of taxes your company needs to pay and when. Therefore, you must check it proactively in order to avoid any penalty and trouble with tax authority.
Of course, we are able to cover all taxes relating to your business in Japan.
Please feel free to ask us.