日本語
English
简体中文
繁體中文Who this is for
- You have set up a Japanese company but have no one to handle bookkeeping and tax
- You must send monthly reports to head office in a set format and language
- Transactions with head office require transfer pricing and withholding tax compliance
- You have started hiring and now need payroll and social insurance procedures
- Shareholder meetings and director-change registrations are not being kept on track
Main taxes on companies in Japan
Companies in Japan are taxed separately on profits, on sales, and on salaries and payments abroad.
| Tax | Levied on | Key points |
|---|---|---|
| Corporate tax and local corporate tax | Profits | Return generally due within two months of the fiscal year-end |
| Corporate inhabitant tax and enterprise tax | Profits (per-capita portion even in a loss year) | Filed with each local government |
| Consumption tax | Sales | First-year liability depends on capital and the size of the overseas group |
| Withholding income tax | Salaries, payments abroad | Tax treaties may reduce the rate |
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Registration is required to issue qualified invoices under the qualified invoice system.
What we do
Bookkeeping and monthly closing
We keep the books and close each month from invoices, receipts and bank statements. Monthly reports are prepared in Chinese and English as well as Japanese, and we can restate figures to your home-country standards, such as IFRS or China's Accounting Standards for Business Enterprises.
Annual closing and corporate tax returns
We prepare financial statements and file and pay corporate, local and consumption taxes. A certified tax accountant attends tax audits.
Consumption tax and qualified invoices
From determining taxable or exempt status at incorporation to deciding on and applying for qualified invoice registration and checking invoice formats. We also sort out the treatment of cross-border transactions and services purchased from overseas.
International tax
We review withholding on dividends, royalties, interest and service fees paid to head office, and relief under tax treaties. We also handle permanent establishment (PE) determinations and taxation of foreign subsidiaries (CFC rules).
Transfer pricing
Prices for transactions with group companies must be at the level independent companies would agree on. We support pricing design, documentation such as the local file, tax audit responses and advance pricing arrangement (APA) applications.
Payroll and social insurance
We handle payroll, withholding, special collection of residence tax and year-end adjustment. Even a company with a single director must enroll in health insurance and employees' pension once it pays remuneration. Social insurance procedures, work rules and multilingual employment contracts are handled by labor and social security attorneys.
Corporate secretarial services
Japan does not require companies to appoint a company secretary, but neglecting corporate procedures can lead to administrative fines. We manage shareholder and board meetings, minutes, directors' terms, change registrations, the beneficial owner list and the shareholder register, all on schedule.
Why TIMOA
- 01
One team handles accounting, tax, payroll, social insurance and registrations, so reporting to head office comes from a single source.
- 02
We prepare monthly reports in Chinese and English, aligned with your head office's accounting standards and reporting format.
- 03
We keep closing and tax payment records in a form you can use for visa renewals and for maintaining bank accounts.
Fees
Fees are quoted once we understand the nature and scope of your engagement. Please contact us first.
Ask about feesFrequently asked questions
Can you report to head office in English or Chinese?
Yes. We prepare monthly trial balances and financial statements in Chinese and English, including in the format your head office specifies.
Do we pay tax in a loss year?
Corporate tax is levied on profits, so none is due in a loss year. The per-capita portion of corporate inhabitant tax, however, is payable even in a loss year. A tax return must also be filed every year.
Does a company with only one director need social insurance?
If it pays director's remuneration, even a one-person company must enroll in health insurance and employees' pension.
What should we watch for when paying royalties to head office?
Withholding tax may be required in Japan, and filing a tax treaty application before payment may reduce the rate. We also check whether the amount is appropriate from a transfer pricing perspective.
Can we switch from our current tax accountant?
Yes. We take over your past returns and books and plan the handover around your fiscal year-end.