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Taxes |
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The scope of our professional expertise in all matters expanding from accounting into taxation is a crucial link necessary to best serve our clients since the complex Japanese taxation system relies heavily on how the accounting records are maintained. |
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| In Japan, there are numerous returns which require filing and it is easy to misfile or miss filing altogether on some of the more obscure ones. Knowing how to file your corporate taxes can make a considerable difference in how much you pay. |
| Equally, whether a foreign enterprise is operating in Japan classified as a domestic or foreign corporation, makes a difference in filing your returns. |
| Principally, the aspects of Japanese taxation you'll need to take into account are issues such as... |
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Corporate Income Tax |
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Enterprise and Inhabitant Tax |
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Depreciable Assets (Property) Tax |
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Business Premises Tax |
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Statement of Business |
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Factor Based Tax |
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The rates of such taxes for each primarily depend on taxable income. |
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| Prefecture and municipal inhabitant taxes are based on the corporation tax within certain graduation of taxation percentages. |
| Prefectural inhabitant per capita tax amount in turn varies based on the total of paid-in capital, capital and number of employees of the corporation. |
| Hence, there's a lot of legislation to consider for a foreign business entity in Japan and it is wise to ensure your tax filing is in professional hands. |
| The affiliate of Okamoto & Company is Hanato Tax Accountant Office, whose team of licensed tax accountants (LTA·s) is qualified to prepare a broad range of Japanese tax returns required from a foreign business entity. |
| As with any knowhow, when it comes to Japanese taxation, it is best to err on the side of caution. Your taxation requirements cannot be handled too professionally and it pays to use expertise. |
| By using Okamoto & Company you are investing in professional experts who specialize in helping foreign corporation thrive in Japan. |
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Consumption tax review services |
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With the economic downturn, many foreign companies with Japanese branches and subsidiaries are downsizing their operations in Japan. We are seeing more instances of back office support functions (i.e. accounting, human resources, payroll, etc) being transferred to Shared Service Centers (SSC) or to parent companies. One of the pitfalls to these transfers is that the systems used by the SSC and the parent companies generally are not adequately setup to record consumption tax information and cannot generate individual account level tax information. Moreover, consumption tax information in Japan is not always displayed as a separate item on invoices, cash receipts or statements, which makes recording of these transactions a little more complicated and prone to errors. As a result, many companies are finding out, at the last minute, that they have problems assembling account level consumption tax information often requested by the Japanese tax authorities when they have questions on their consumption tax returns. |
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If you think you may have a problem, contact us for a free evaluation. Our team of professionals will review your situation and provide you with the right approach and solutions to your problem with a fee estimate. Summer and early fall will be the best time to perform these reviews when there is ample time to get you on the right track before the busy tax season starts. |
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