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Running a Business in Japan: Director’s Bonus

Paying bonuses to directors can be an effective way to reduce corporate taxes, but only if the tax office has been informed.

In case your company has decided to set up a director’s bonus, then the tax office can be notified within one month after the shareholders meeting that takes place after the end of the fiscal year.

However, for newly established companies the grace period is 2 months after establishment.

Please note that, that also shortens the notification period for director’s salary.

If you need more information, please feel free to contact us. We can support your business establishment in Japan.

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