This is one of the frequently asked questions. Basic rule: Non permanent tax resident is not taxable for foreign source income unless the gain is repatriated into Japan The basic rule is that foreign sourced income of non-permanent tax residents (who have been in Japan more than 5 years in the past 10 years) is … Read More “Is capital gain from foreign stocks I purchased before I came to Japan taxable or not taxable? Talking about 特定有価証券の譲渡” »
There are lots of businesses that receive orders from customers overseas and buy goods in Japan for margins. We also have several clients doing the business too. Their margins are relatively low in many cases that is mostly in the range between 1% to 10%. Some businesses only charges 300 yen per item. Still they … Read More “Trap to get a consumption tax refund when your business buys goods and export overseas 購買代行で気を付けなければいけない落とし穴” »
Recently Japanese Yen became even weaker to almost 145 yen per USD. I received a question from a client today whether exchange gain will be reportable or not for Japanese Income Tax. It would feel a bit unreasonable if one had to pay tax on the gain if her savings were accumulated even before she … Read More “Income tax on currency exchange gain” »
Why company valuation matters? You will need a valuation of company for several occasions. If you would like to give your company shares to your employees, it will be regarded as salary, and you need valuation of the shares. They will have to pay tax on thier income. On the other side, you will have … Read More “Company valuation is important for many occasions.” »
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 … Read More “4 important things you need to know when you start your own business” »
There are two tax filing statuses. One is called Blue Form filer and the other is called White Form filer. If you have your own company or have your own proprietorship, you should choose Blue Form filer status as your tax status because it is much better and basically there will be nothing to lose. … Read More “Benefit of Blue Form Tax filer status” »
People sometimes get confused about the concept of tax Permanent Resident with Rermanent Resident for VISA. They are separate concepts. Being a Permanent Resident (PR) for VISA does not necessarily mean you are a Permanent Resident for tax. PR for visa is a permission to stay and you can still decide how many days you … Read More “Tax Permanent Resident status vs Permanent Residency for VISA” »
为了说明哪些人士可以通过选择消费税申报人身份而受益,我将解释消费税是如何计算的。基本规则是,应缴消费税是收入所得与所支付的费用之间的差额。我会举非常简单的例子,请见下面的计算。 在本例中,销售额为1300万日元,总支出为1090万日元。所收到的消费税是130万日元。由于工资不含消费税,所需支付的消费税是所售商品成本、租金、差旅费和其他费用的总和。如您所见,应缴消费税为51万日元。 正如现在所看到的,那些选择成为消费税纳税人而受益的人士,是那些拥有某种商业模式的人,其应纳税额在计算的底部变为负值。我将说明两种典型情况: 1)向海外出口货物或提供服务的企业: 下表显示了一个出口业务的案例。由于向海外出口货物而获得的收入不需要缴纳消费税,因此只需缴纳日本消费税的费用。因此,您不会收到销售的消费税,而却为您的支出缴纳了税款,因此您支付的税款与您收到的税款之间的差额将变为负值。由于您缴纳的税款大于收到的税款,您将通过提交消费税申报表来获得消费税的退税。 . 这一优惠规则适用于进行海外销售的公司。 而且,该规则不仅限于出口商品的企业,还包括向海外客户提供服务的企业。那些为母公司做销售代理并收取提成费(如5%的提成费)的公司,也将通过选择消费税纳税申报人身份而受益。 2)拥有大量初始投资的企业: 需要大量投资的企业应考虑选择成为消费税的申报人。例如,如果打算建造一座工厂或办公楼,您的初始投资将是巨大的。而且,与未来几年的收入税相比,您要缴纳的消费税也将是巨大的。在这种情况下,您的选择当然是成为消费税申报人。 限制 当您的默认状态为“非申报人”时,选择消费税申报人也有负面影响。因为有一段时间,您将被限制回到纳税申报人的状态。 一旦选择成为消费税纳税申报人,必须至少保持两年的消费税纳税申报人身份。若想在某一年(例如第二年)成为消费税纳税申报人,您需要在上一个财年(第一年)结束前,提交一份指定的申请表。在下方示例中,您通过在2019年提交申请表,选择在2020年成为消费税纳税申报人。在2021年,您将不被允许回到豁免状态。您必须保持“非豁免状态”至少两年。为了回到豁免状态,则需在想回到豁免状态的那一年之前,提交另一份申请表格。 若在应税期间购买的某件物品超过100万日元,您将必须作为消费税申报人再保持两年(总共三年)。 确切地说,根据税法的规定,在财政年度结束之前(包括自财政年度开始之日起三年内,您购买的资产超过1000万日元的那一天),您将不能回到豁免状态或切换到“简化方法”。 同样,为了恢复豁免状态,您需要提交另一份申请表格。
The rule changed recently without much announcement from the government, but the change may impact significantly exporting businesses that ship goods abroad and expect to get a consumption tax refund. This is the announcement from the tax office. https://www.nta.go.jp/publication/pamph/shohi/r03kaisei.pdf Basically, what it says is that if value of your merchandizes below 200,000 yen, it has … Read More “What you need to have when you apply for Consumption Tax refund for export business” »
Withholding tax is ultimately responsibility of the person who pays royalties. Even though you might have paid already full amount to your service provider, the purchaser of the service will have to pay the withholding tax to the government if they demand, for example, as a result of a tax audit. It looks unfair because … Read More “How to get refund of withholding tax on royalties that is already paid to service providers/sellers of software” »