Talk about tax and corporate finance in Japan
Individuals or small capital companies (with paid-in capitals under 10 million yen) can elect the tax filer status or non-filer status of Consumption Tax during the first 2 years from the inception of the business or its incorporation. The default status is the non-filer, so unless you elect otherwise, you will automatically be a non-filer … Read More “1. Japanese Consumption Tax Filer: To be or not to be?” »
There must be many people including business owners and independent freelancers in Japan who are surprised by how much consumption tax they have to pay at the end of a fiscal year when they file their tax returns. I was surprised by how expensive it can be. Two options how to calculate the Consumption Tax … Read More “Japanese Consumption Tax – Standard method or Simplified?” »
1.) Two different Consumption tax filer status (Exempt vs. Non-Exempt) For individuals or SMEs (Small & Medium-sized Enterprises whose definition is that their capital is less than 10M yen), there are 2 options to choose from. One is Exempt status (of consumption tax) and the other is Non-Exempt status. The default status is Exempt for … Read More “Getting Japanese Consumption Tax Refund. How and when.” »
For the first 2 years, SMEs are exempt of consumption tax by default. An SME means a company with paid-in capital less than 10 million yen. Most companies should choose this default consuption tax status. However, if your main business is to buy things in Japan and export to clients overseas or services for non-resident … Read More “Consumption tax refund on export sales and services to non-residents” »
Accounting handling The new Japanese GAAP for criptocurrencies was announced in March 2018. Valuation has to be mark-to-market if it has an active trading exchange or market. The difference has to be booked as income or loss (not comprehensive income or loss). Those actively traded criptocurrencies such as Bitcoin, Ethereum, XRP are supposed to be … Read More “Japanese GAAP and tax rule for criptocurrencies” »
There are two types of merger and acquisition under Japanese corporate tax law. Namely qualified and unqualified merger. Well, the difference is that, in case it is qualified, unrealized gain on asset will not be taxed in the merger. More importantly you will carry the tax loss accumulated in the past. On the other hand, … Read More “Qualified Merger as joint venture. The conditions to be met.” »
If your business is to export goods or services from Japan, it is likely that you are able get consumption tax refund. However, you need to meet the following conditions: 1) you need to register your company business to Japanese Tax Office. 事業開始届 or 会社設立届 2) you are by default exempt of consumption tax if … Read More “How to get consumption tax refund” »
This post is about claiming refund of Japanese Consumption Tax. The rule about Japanese consumption tax is complex at first glance. If you are not a law person or accounting person, you may want to leave this matter to your accountant. But there are not that many that you need to know. Actually, you only … Read More “Ex-work is not what you want for consumption tax refund” »
Exporting used cars to Russia. Consumption tax refund rejected There was a tax ruling in the past where a car exporter to Russia was rejected for a consumption tax refund. The company was buying used cars in Japan and exporting to Russia. Because all the purchases took place in Japan and cars were exported to … Read More “Consumption tax refund – be careful with ex-works or how you pay freight and insurance. You may not get it back.” »
When you are thinking of investing Japanese properties, please talk with a qualified tax accountant. It will probably make a huge difference in your future cash flow i.e. consumption tax refund. At the beginning of investing, you will need to decide whether you will buy properties as an individual or setting up a company and … Read More “Consumption tax refund from investing Japanese properties” »
