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Our Services on Japan Tax

We are certainly professional in Japan. If you hope just a tax service provider in stead of your back office work, any provider could do it.
However, I believe you need a various practical advice to Japan Business, then we could be the best for you.

Cloud-Based Accounting

We recommend to use a cloud-based accounting book service. This is because the accounting book could be updated automatically and timely when the related laws are amended. You do not need to wast your time to comply. Japan sales tax called as consumption tax in Japan, is changing. Looking back the change, starting date of new tax rate was different based on the contract. This was very complicated for practical business situation. We also recommend to use Japanese cloud-based accounting system, actually we strongly recommend you "freee". The reason why we recommend Japan service, is that the Japan service could help you to meet Japan Business. For example, freee could obtain your transaction data from your bank account and your credit card company automatically, and could prepare to entry the journals. If you use XERO or Quickbook, you have to download the csv file or ofx file from your bank, and to make them imported, besides, you have to set up all chart of accounts to meet Japan tax laws.

In-house Efficiency

You could save a time to work on administration, especially freee could ease your office work. Accordingly, you might not need a full-time office worker. Your accountant in-house might spend more time to propose you to improve your business by analyzing data. As routine journal entries are automatically run by freee, your office worker has to pay for invoices and salaries. If you pay by cash, please take a photo of the receipt at that time, by freee app on your device. freee app store your receipt data on your cloud storage. Your in-house accountant could entry your expense by the receipt data. This could be so easy action that you could use without understanding Japanese words on freee. Personnel administration could be managed by freee easily. freee could record every employee's working time as working time recorder, and calculate every employee's salaries. Off course, the journal entry of salary payment is automatically entered. We could support this freee to meet your use in your company, from setting up to daily operation.

Everything to Japan Tax

We could manage and work for all of your preparation and filing of Japan tax. When you open your business in Japan, you have to file some applications to the tax office controlled by National Tax Agency. If your taxed sales amount is lager enough, you have to file a tax return of sales tax monthly, quarterly or semiannually. You have to also file the payment report called "SHI-HA-RAI-CHO-SHO" to the tax office in every January, when you withhold a tax from payment. We could work on all of those on behalf of you. We recommend freee for your accounting book, however freee could not display English menu, and all accounts are Japanese words. You might not be able to use Japanese system, nor to read it. Accordingly, we have challenged and succeeded to display English accounts on freee, as a result, you could entry your records and read a summary of account balances. As freee itself could not be actually translated in English, the operator is required to understand Japanese language.

Japan Tax

If your business generates income in Japan, you have to file a tax return on following tax.

Tax Year
Companies could define the business year on the articles of incorporation, and a tax year is defined by this business year. Companies have to file the tax return within 2 months after the end of the tax year. Individuals' tax year is a calendar year, that ends December 31. Individuals have to file by March 15.
Income Tax
Regarding companies, Japan has Corporate Income Tax law, called as "HO-JIN-ZEI". Regarding individuals, Japan has another Income Tax, called as "SHO-TO-KU-ZEI". Income tax is calculated by multiplying the taxable income by the tax rate. The format of a tax return for a corporate, has about 21.
Consumption Tax
When you figure consumption tax, you first classify all of your revenue transactions into 3 types. One is taxable revenue, second one is non-taxable revenue, and the last one is no tax revenue. Of course, it is too tough to classify all revenue transactions at the end of the tax year. Accordingly, Japan accounting system is required. Besides, there are 2 ways to figure your consumption tax. This means that it is difficult to figure consumption tax and prepare the tax return.
Residence Tax
Even if you have no income to be taxed on income tax, you are charged by this residence tax at minimum amount. This residence tax imposes both a corporate and an individual.
Local Corporate Income Tax
Local Corporate Income Tax is figured at the same format of income tax return, and this is paid at the same account.
Local Consumption Tax
Local Consumption Tax is also figured at the same format as consumption tax. 1.7% is the tax rate of local consumption tax, and totally it gets 8%.
Corporate Residence Tax
Residence tax is imposed by each local government. Accordingly, if your company has a lot of business sites, this calculation gets complicated.
Business Tax
Business tax is imposed by each local government. Business tax rate is the total amount of the tax calculated by 3 ways. One is determined by income, the second is determined by value-added amount, and the last is determined by capital amount.

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