There are many strategies that can be adopted to reduce inheritance taxes. The following are ten recommended steps to reducing inheritance tax in Japan. Basics 1) First estimate your tax based upon your current situation and then see how the amount of tax would be effected if certain conditions are met. List out the effect […]
According to several of our clients who have recently established companies in Japan, opening a corporate bank account has become increasingly difficult. We checked with a Japanese credit union and were told that they would have to check the offices of the applicants to make sure of the type of business they were conducting. The […]
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 […]
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 […]
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 […]
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 […]
The withholding of resident tax is done in a different manner than the system used to withhold the national income tax. The national income tax is mandatorily deducted from each employees’ salary each month. Technically, companies are also supposed withhold resident tax from an employees compensation based upon the tax notice that local government sends […]
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 […]
You might be tempted to buy a zombie company which has been losing money for several years in order to take advantage of the loss carry forwards. But, it might be a good idea to do so. In Japan corporate tax losses can be carried for nine year as long as the company has a […]