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Japanese Exit Tax on Stocks

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I was recently asked about the Japanese EXIT Tax and how it can potentially affect people who have a presence in Japan and other countries and who also own stock in Japan. There is no tax on capital gains on Japanese stocks for non-residents.  Residents of Japan are taxed at a flat rate of 20.42 […]

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How to Establish an NPO in Japan

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There are two main types of Non-Profit Organizations (NPOs) you can setup in Japan, the Standard Corporate Organization (SCO 一般社団法人), and the Standard Fund Organization (SFO 一般財団法人).  There are other types of NPOs, but due to the difficulty in establishing them, they really aren’t practical.  The SCO requires fewer people and thus is easier to […]

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Tax Saving Ideas in Japan

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I recently met with a client who business is doing quite well. They wanted to discuss ways to minimize their taxes as the year-end was approaching.   Initially I proposed some of the more common or general tactics such as investing in real estate, insurance policies, or buying items that could immediately be expensed.  During […]

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Non-Resident Salary Tax in Japan

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Salaries paid to non-residents of Japan are subject to Japanese withholding tax. So, if you are an employer in Japan and you are paying a salary to non-residents, you are required to withhold 20.42 percent of the salary as an income tax. This amount has to be paid to the government the following month.  If […]

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Stock Valuation for Private Companies in Japan

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Ascertaining and using an appropriate valuation is important and necessary to avoid future tax problems when selling private company stock to relatives or to another company that you own. If you sell the stock to cheaply the buyer of the stock could face having to pay a gift tax. A variety of valuation methods are […]