Question 1

Comparative Research

Accepted Answer

Opening an office in Japan is the first step of a long-term commitment to the Japanese market. Firstly, you will conduct comparative research to decide whether to form a representative office, branch or company.  Here is our quick review for you to make a comparison study.
 
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Question 2

Consumption Tax (VAT)

Accepted Answer

Consumption tax is a value-added tax (VAT), known in some countries as goods and services tax (GST). It applies to all goods and services that are bought and sold for the use in Japan. Therefore, goods exported to customers abroad are not subject to VAT, and those imported to customers in Japan are taxed.
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Question 3

Incorporation Expenses

Accepted Answer

​When you set up a new company, you will pay some expenses like registration fee and opening costs. Who should bear such expenses, shareholder or a newly incorporated company?
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Question 4

Withholding Tax

Accepted Answer

Under Japan domestic law, a payer may have a duty to withhold tax in relation to the payment of a specified nature. When to file and pay withholding tax?
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Question 5

Blue Return (tax benefit)

Accepted Answer

If a company keep double-entry records properly in its accounting book, the tax return of the company is treated as Blue Return and some tax benefits will be offered.
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Question 6

R&D Tax Incentives

Accepted Answer

The government made a fine tune on the powerful R&D incentives, which have been playing a significant role in attracting innovative foreign corporations. 
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Question 7

Inheritance Tax

Accepted Answer

Did you know that decedent’s asset located in Japan is subject to inheritance tax even when both the successor and the decedent are foreign national and non-resident? If you inherit Japan stocks from the deceased, Japanese inheritance tax will be imposed regardless of the residency/nationality of the decedent or heir.
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Question 8

Corporate Income Tax

Accepted Answer

The government has been cutting the corporate tax rate to boost investment and wages while raising consumption tax rate. You can say the overall rate of income tax is around 30%, but details are more complicated.
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Question 9

Thin Capitalization Rules

Accepted Answer

How do you choose between debt and equity in the capital structure of your overseas subsidiary? Each has both benefits and drawbacks. 
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Question 10

Earnings Stripping Rules

Accepted Answer

If the income tax rate in the jurisdiction of a subsidiary is much higher than its parent company’s, you may prefer a loan to equity finance from the perspective of tax because interest is tax deductible. One of the tax rules to prevent excessive tax avoidance behavior is earning stripping rules.
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Question 11

Dividends vs Director Fees

Accepted Answer

If you are doing business through a company, you must be always thinking about the most tax efficient way to get money back to your personal life. If you are both a shareholder and a director of the company, you may be wondering which way is less taxed, dividends or director fees.
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