When You Need Incorporation for a Tax Advantage

Posted on 2017-04-032017-09-03 by shirokaneadmin

Start Your Business Simply Most people start their business as sole proprietors and run their business for some years. That is not a bad idea. Rather, that is still a good idea because you could start your business without paying the incorporation taxes and because you could complete your tax return by filing just your individual income tax return. You also could try your business without a large amount of initial investment. However, you need a company for your tax advantage when you get your business growing enough. I will explain here how and where you could get tax advantages in Japan tax practice. Those advantages are to; Make to[…]

Individual Residential Tax in Japan

Posted on 2017-03-262017-08-26 by shirokaneadmin

1. What Is the Individual Residential Tax There would not be a residential tax in the US and the UK. Since the Council tax in the UK imposes a citizen based on the residence, the council tax is similar to Japanese real estate tax translated into fixed asset tax in official documents issued by local governments. Residential tax is sometimes called residence tax and translated into inhabitant tax officially in Japan. Here I use residential tax to explain it. 2. Calculation of the Individual Residential Tax Japanese individual residential tax consists of two components. One is calculated by individual taxable income, and the other one is a fixed amount of[…]

Tax Saving for Expats in Japan

Posted on 2017-02-252017-08-25 by shirokaneadmin

This is a general tax saving method in Japan but most Japanese employees could not use this method. This is the difference between expats in Japan and employees in Japanese companies. Japanese employees called Salary-man in Japanese are forbidden to work additionally even in their private time. Taxable incomes for individuals are classified into 10 taxable incomes. Here we talk about 2 of them, business income and Employment income. Business income is an income derived from your business like independent enterprises of commerce, industry, fisheries, agriculture, independent personal services, etc. You have to record your all transaction relating to your business on your accounting book. At the end of a[…]

The Best Company Type in Japan Business

Posted on 2017-01-202017-08-09 by shirokaneadmin

You have to decide your company type stipulated by Japan’s Companies Act below. Stock corporation (Kabushiki-Kaisha (K.K.)) Limited liability company (Godo-Kaisha (G.K.)) Unlimited partnerships (Gomei-Kaisha) Limited partnerships (Goshi-Kaisha) Gomei-Kaisha and Goshi-Kaisha are rarely established in practice because even limited partners also have direct liability although these two types companies have legal entities. K.K. is the most popular company for business in Japan. You would be able to acquire good enough credit from transaction parties. On the other hand, G.K. is used for a super micro business, or for a just vehicle for tax saving. All types of subsidiary companies can be incorporated by completing the required procedures stipulated by law[…]

New Documents for Exemption for Dependents on Japan Individual Income Tax

Posted on 2016-12-182017-01-17 by shirokaneadmin

With respect to withholding at source for salary, to be paid on after January 1, 2016 or the year-end tax adjustment, You are required to submit the following documents in order to apply exemption for Abroad Dependents. 1. Applying for a Tax Exemption for Dependents If you have family supporting their life expense, you would be able to deduct some amount from your income on tax calculation. The new rule is for the exemption for dependents living abroad. Under income tax laws and regulations, the new rule has come into force since October 2015. Accordingly you are required to submit or present “Documents concerning relatives” and “Documents concerning remittances” for[…]

Seal Impressions of a Company

Posted on 2016-10-232017-01-10 by shirokaneadmin

Even if you used your signature on your business in Japan, company’s seal impressions are needed in formal cases. There are generally 3 types of company’s seal impressions in Japan. I here explain them as follows. 3 Types Registered Seal Impression Seal Impression for Bank Squared Seal Impression A Registered Seal Impression This must be prepared, because this is used to identify your company in formal case. This is usually rounded and this has two words, one is your company name engraved around, and the other word is Representative engraved in the center of the seal impression. This is used for contracts. A Seal Impression for a Bank When you[…]