Q2:Could you explain the benefits for foreigners and foreign companies to establish bases in Japan?
ringo tax corporation
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
A: By establishing a base in Japan, transactions with Japanese companies can be accelerated.
Reason 1: Smooth progress in legal and tax matters
Complexity of domestic and foreign laws and tax systems:
By establishing a base in Japan, foreigners and foreign-owned companies can engage in transactions with Japanese companies, utilizing Japan's legal and tax system, thus facilitating smooth transactions. Conversely, in cross-border contracts with foreign company headquarters, there may be a need to consider different laws and tax systems, potentially requiring specialist support and increasing the hurdles before initiating transactions.
Reason 2: Swift fund transfers
Convenience of domestic transfers:
With a base in Japan, domestic fund transfers are possible for transactions between Japanese companies. However, in cross-border transactions with foreign companies, if transfers occur from Japan to foreign countries or vice versa, banking procedures become more complex, settlement takes longer, and there is a potential decrease in the attractiveness of transactions.
Reason 3: Building a sense of security
Convenience of domestic transfers:
With a base in Japan, domestic fund transfers are possible for transactions between Japanese companies. However, in cross-border transactions with foreign companies, if transfers occur from Japan to foreign countries or vice versa, banking procedures become more complex, settlement takes longer, and there is a potential decrease in the attractiveness of transactions.
For these reasons, establishing a base in Japan contributes to streamlining transactions and building trust for foreign companies, paving the way for success.
