Q82:I am considering expanding from abroad into Japan. Could you tell me about the tax procedures related to entering the Japanese market?

A: Tax-related procedures are extremely important when entering the Japanese market. The Japanese tax system is complex, and it is essential to adhere to the correct procedures. Here, I'll briefly explain Japan's tax procedures, but for specific cases, please consult a Japanese tax accountant.

Explanation

Firstly, after establishing a company or branch, several notifications need to be submitted to the tax office, prefectural tax office, and municipal office. This includes the corporate establishment notification and, for foreign corporations, a notification that the entity has become a foreign ordinary corporation.

Applications for approval of the blue return system and notifications of establishment of payroll offices are also necessary. Especially for the blue return system, which offers tax benefits, it is important to proceed with the application early to receive these benefits.

There are also applications for special provisions for the due date of withholding income tax. By utilizing this special provision, it is possible to delay the payment deadline for withholding income tax, which can be beneficial for cash flow management.

Since these procedures are based on Japanese tax laws, it is recommended to consult a Japanese tax accountant for accurate information. Our firm has English-speaking Japanese tax accountants available to address your inquiries at any time.

If you have any questions or need consultation regarding tax matters for entering the Japanese market, please feel free to contact us.

Japanese Certified Public Accountant ・English-speaking Japanese tax accountants Hiroya Aihara
Ringo Tax Corporation

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