4 important things you need to know when you start your own business
Each item has a detailed explanation you can find by clicking the link.
1. Blue Tax Application Form
There are two tax filer statuses; One is Blue and the other is White. Blue has more tax benefits. You can see the details here.
2. Consumption Tax filer status
If your capital is under 10MM yen, you can choose to be a Consumption Tax filer or exempt. The default status is that you are exempt but under certain circumstances, you may benefit by choosing
Here is the detail.
3. How much paid-in capital do I need to have when incorporating a company?
10MM yen to affect your consumption tax filer status
10MM yen to increase your minimum tax
If your capital is over 10MM yen, your minimum corporate tax will be 180,000 yen. If it is under 10MM yen, the tax will be 70,000 yen a year. The minimum tax is what any company will have to pay every year and it does not matter whether you are profitable or making losses. So, keeping the minimum tax minimum is the best in the long run.
4. Director Salary
If you are the one who set up a company, you are probably a director of the company. There is apparently a unique rule in Japan that does not exist in other countries. The rule is that you are not allowed to change your salary or other directors salary during a fiscal year. The differences from the original salary and the revised one will be Non-Deductible. You will see the details here.