Japan tax news– category –

Essential International Tax Knowledge In today's globalized world, many companies regularly conduct overseas business trips and short-term assignments. A crucial concept that must be understood in such situations is the "short-term resid...

Anti-Tax Avoidance System for Transactions with Overseas Related Companies For companies with overseas related companies, the choice of financing methods becomes a crucial tax consideration. The decision between equity investment or borr...

Foreign Currency Exchange Rate Treatment for Corporate Transactions In today's globalized world, many companies engage in foreign currency transactions. However, there are complex rules regarding yen conversion methods for tax purposes, ...

Tax Treaty Applications for Payments to Foreign Corporations When making payments of dividends, interest, or royalties to foreign corporations, failure to follow proper procedures can result in a high withholding tax rate of 20.42%. By c...

Four Categories of Taxpayers and Their Taxation Scope Japan's tax system divides taxpayers into four categories, each with different taxation scopes. Residents are individuals who have an address in Japan or have continuously mainta...

Tax-Exempt Store Refund System Transition in Japan Starting November 1, 2026, Japan's tax-exempt store system will undergo fundamental changes. The complete transition from the traditional "immediate tax-exempt price sales at the point o...

The Critical Importance of Foreign Related Party Concepts in Transfer Pricing Regulations One of the most crucial concepts in transfer pricing regulations is the determination of "foreign related parties." This determination is a vital e...

Issues with DDP Transactions with Japanese businesses DDP (Delivered Duty Paid) is a commonly used trading condition in international trade. This is a convenient contract where "the seller bears all costs including customs duties an...

Basic Mechanism and Purpose of Transfer Pricing Taxation System Transfer pricing taxation system is a system that recalculates taxable income based on appropriate prices when income is transferred overseas due to transaction prices ...

Japan Export Tax Exemption for Consumption Tax The export tax exemption system is based on the fundamental principle that consumption tax, being a domestic consumption tax, should not be imposed on goods and services consumed abroad. Con...

Cross-Border E-Commerce for Foreign Companies Without Japanese Operations Cross-border e-commerce business, where foreign companies sell products and services directly to Japanese consumers through their own websites without establishing...

Why is domestic and foreign judgment important regarding Japan's consumption tax? When considering the taxation relationship for Japanese consumption tax, we consider the taxation relationship in stages. First, we need to consider whethe...

What is a resident? According to the Income Tax Act, a "resident" is defined as an individual who has an address in Japan or an individual who has continued to reside in Japan for one year or more. Residents are liable for Japanese incom...

What is fulfillment service? "Fulfillment service" is a service that performs a series of operations on behalf of e-commerce site operations, such as storage and management of products, order processing, packaging, shipping, and return h...

Background of the Correction Due to the revision of the Customs Act, the requirement for consumption tax declaration arose from the need to clarify the tax burden when importing and selling goods in Japan, and to ensure the proper collec...

Introduction Dependency deduction for dependent relatives residing overseas Dependency deduction, spousal deduction, special spousal deduction, or disability deduction are applicable if certain conditions are met under Japanese tax law. ...

Subject to consumption tax Consumption tax is only applicable to the following three transactions: Transfer and lending of assets and provision of services carried out by business operators in Japan for compensation as part of their busi...

The general tax-related procedures that Japanese corporations must complete within a year are wide-ranging, including corporate tax, consumption tax, local tax, and withholding tax. We will explain these procedures in chronological order...

Background of the introduction of the consumption tax invoice system Japan's invoice system is a consumption tax-related system that requires businesses to issue and save qualified invoices. This system will be introduced on October 1, 2...

How inheritance tax can be deferred if it cannot be paid in cash If inheritance tax must be paid, it may not be possible to pay the inheritance tax in full by the due date because real estate accounts for a large portion of the inherited...