Electronic Book Preservation Act
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. However, after the tax reform, this requirement has been abolished. The updated Electronic Book Preservation Act has 3 main categories: First 2 categories are optional, businesses can choose to comply […]
Foreign Dependent Deduction /Necessary documents/
Last week, we talked about the foreign dependent deduction a little bit. Now let’s see what kind of documents are needed when claiming this deduction. As we mentioned before, from 2023 there are some changes in the regulations. For example, if a foreign dependent doesn’t belong to the listed categories, the taxpayer cannot claim the […]
Foreign Dependent Deduction
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 overseas, you may be able to claim this deduction. Of course there are some conditions you have to meet. For example, depending on the age of the dependent, the amount […]
Individual Inhabitant Tax
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 tax. If we look at it by subject, there is an individual inhabitant tax and a corporate inhabitant tax. And again, there is a per-capita levy and income-based levy for […]
Income Tax – Insurance Deductions
Unlike other countries, Japanese tax law allows us to deduct life insurance premiums, earthquake insurance premiums and some other insurance premiums from our taxable income. Just make sure that you provide proof of payment such as certificates with your tax return or (depending on the type of tax liability you have) to your employer when […]
Company types in Japan
According to Japanese Company Law, there are 4 types of company in Japan.1. Stock Company – 株式会社2. Limited Liability Company – 合同会社3. General Partnership Company – 合名会社4. Limited Partnership Company – 合資会社Unlike the first 2 types, the partnerships held unlimited responsibilities for the company debts. Sometimes that can be dangerous and risky for business owners. […]
Deductible Entertainment Expenses
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 can write off some portions of entertainment expenses as tax deductible expenses. There are other exceptions as well regarding both the company size and type of entertainment expenses. For more […]
Corporate Residence Tax – Per Capita Levy
Corporate Residence tax, also known as Corporate Inhabitant Tax – Per Capita Levy is one of the taxes that you have to pay even if there is no sales. The subject of this tax includes corporations, non-judicial associations and foundations engaging in profitable business activities which have office/s in Japan. The tax amount will depend […]
Legal Record Total Table
Every company in Japan has a obligation to file Legal Record Total Table (法定調書合計表) by January 31st every year. According to the National Tax Agency official website (www.nta.go.jp), there are a total of 60 types of certificates in this statutory report. For more information, please reach out to us at Seventh Sense Group!
YETA – Life Insurance Deduction
Can claim this deduction through the YETA by submitting insurance application form and a notice of insurance contract.