Tax and Accounting in Japan

Consumption Tax (methods)

Tanya Taseva August 16, 2024

There are 2 methods of calculating consumption tax in Japan, the standard method and the simplified method, and the amount of consumption tax may differ

Business Office Tax

Tanya Taseva August 9, 2024

What is “Business Office Tax” Business Office Tax is a local tax that is levied to businesses that meet certain criteria. Unlike other local taxes,

Dormant company

Tanya Taseva July 11, 2024

You can make your company dormant in Japan by submitting the form to the relevant authorities. As the company has no profits, there won’t be

Moving-out Notification (pension withdrawal)

Tanya Taseva July 4, 2024

For foreigners who have paid into the Japanese pension system, there is a lump sum pension withdrawal you can apply when you leave Japan. Requirements

Incorporation costs

Tanya Taseva June 28, 2024

What are “Incorporation costs” The costs you have paid for the incorporation process. These include: Incorporation costs, also known as start-up costs, organization cost as

Special Accommodation of 20% (Invoice System)

Tanya Taseva June 7, 2024

What it is Tax amount – The consumption tax payable becomes 20% of the consumption tax on your sales. In other words, your consumption tax

Tax Reduction 2024 in Japan

Tanya Taseva May 31, 2024

The Japanese government will introduce the Flat-rate Tax Reduction in June 2024. This tax cut is designed to reduce the tax burden on employees due

Purchase tax credits (Invoice System)

Tanya Taseva May 24, 2024

If you have a business in Japan, you are probably aware of the Japanese consumption tax. From 2024, Japan has introduced the Invoice System and

Company Formation from Sole-proprietorship (法人成り)

Tanya Taseva May 17, 2024

Normally, starting a new company means starting from scratch. However, if you already have a business as a sole-proprietor, you can transfer your assets (cash,

Income wall for dependents (Social Insurance)

Tanya Taseva May 14, 2024

One of the benefits of being enrolled in Social Insurance is that your family member can become your dependent for health insurance and, if they

Interim Tax (Japanese taxes)

Tanya Taseva May 2, 2024

Interim tax In Japan, individuals who are required to file a tax return must do so by March 15th each year. When they file, if

Branch Office in Japan

Tanya Taseva April 5, 2024

Last time we talked about opening a representative office in Japan. This time, let’s talk about the branch office. It is called “支店” (shiten) in

Gift Tax in Japan

Tanya Taseva March 29, 2024

Gift tax is triggered when you receive assets worth more than 1,100,000 yen from individuals. The threshold includes the total amount of all gifts you

Representative Office in Japan

Tanya Taseva March 22, 2024

One of the ways to expand your business in Japan is to set up a representative office (駐在員事務所). Compared to setting up a company, there

Director’s enrollment in insurance

Tanya Taseva February 21, 2024

Japan’s labor insurance system includes workers’ accident compensation insurance and unemployment insurance. Employers are obligated to enroll all workers, including part-time employees, to workers’ compensation

Company Formation Documents (part 2)

Tanya Taseva February 13, 2024

Last week we introduced the Articles of Incorporation. Another important document that you will need when you start a company is a Seal Registration Certificate.

Company Formation Documents (part 1)

Tanya Taseva February 6, 2024

There are many documents that are required when starting a company in Japan. One of them is the Articles of Incorporation. In Japanese, it is

Individual Income Tax 2023

Tanya Taseva January 24, 2024

An individual can file an income tax return from February 16 through March 15, 2024.There are 2 ways to file, online or in paper. If

Filing a report of Assets and Liabilities

Tanya Taseva January 18, 2024

If you have various incomes (excluding retirement allowances) that exceed 20 million and own assets with a total value of 300 million yen or more

Non-compliance of Assets and Liabilities Report

Tanya Taseva January 11, 2024

Some residents in Japan are required to file reports of assets and liabilities by the due date at the tax office where they are registered.

Tax Implications of Cryptocurrency

Tanya Taseva December 27, 2023

Did you know that in Japan, cryptocurrency is considered an asset? This means that if you live in Japan (resident) and had your crypto earnings

Individual Income Tax Return – Payment Certificate

Tanya Taseva December 6, 2023

Soon it will be time for Japanese individuals (freelancers or sole-proprietors) to file their tax returns. One of the important documents to submit for filing

Electronic Book Preservation Act

Tanya Taseva December 1, 2023

Before the 2022 tax reform, a business who wants to apply the Electronic Book Preservation act had to obtain approval from the local tax office.

Foreign Dependent Deduction /Necessary documents/

Tanya Taseva November 20, 2023

Last week, we talked about the foreign dependent deduction a bit. Now let’s see what kind of documents are needed when claiming this deduction. As

Foreign Dependent Deduction

Tanya Taseva November 13, 2023

There are many deductions that can reduce your taxable income. One of these is the foreign dependent deduction. If you support your family who live

Individual Inhabitant Tax

Tanya Taseva November 2, 2023

There are several types of Japan’s inhabitant tax. If we look at it by location, there is the municipal inhabitant tax and the prefectural inhabitant

Deductible Entertainment Expenses

Tanya Taseva June 14, 2024

If your company is a small and medium sized company (paid-in capital is less than 100 million yen and no relations with Large entities), you

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