Q12: How is the financial closing conducted for a liaison office?

Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation

A: Since a liaison office does not conduct sales activities in Japan, it mainly incurs expenses, and there are hardly any transactions subject to taxation such as corporate tax.

Explanation

Since a liaison office does not conduct sales activities in Japan, it mainly incurs expenses, and there are hardly any transactions subject to taxation such as corporate tax. Therefore, accounting is conducted only for expenses, and the financial situation is reported to the head office to complete the financial closing.

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