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“Doing Business in Japan” is an English-language guide for those interested in establishing or expanding their business in Japan. It provides an overview of business structures, accounting and taxation, social security, and employment regulations.
FY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
Under Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
The 2020 Tax reform closed a loophole for wealthy individual taxpayers who used investments in offshore second-hand buildings to reduce their income tax liability. Losses generated by these investments can be used to offset against other types of income and reduce a taxpayer’s total tax liability. The loophole relied on the accelerated depreciation deductions that could be taken for a second-hand building that was either nearing, or had reached, the end of its statutory useful life.
The Tokyo Olympic and Paralympic Games (“the Games”) have been postponed until the summer of 2021 due to the worldwide COVID-19 outbreak. Special tax exemption rules, as provided for in the Act on Special Measures Concerning Taxation, will apply to non-resident athletes, game officials and foreign corporations involved in the Games.
1. Foreign corporation with a Permanent Establishment (PE) in Japan 2. Calculation of taxable income. 3. Calculation of corporation tax liability 4. Local taxes 5. Documentation requirements
1. Definition of a leasing transaction for tax purposes 2. Treatment of a leasing transaction for Corporation tax purposes. 3. Consumption tax
As the result of the 2018 tax reform, a new salary increase tax credit will apply to fiscal years that begin between 1 April 2018 and 31 March 2021. This new tax credit is designed to assist corporations that invest in new assets and develop human resources.