Business Office Taxation in Japan
JAPAN TAX BULLETINThis article introduces the Business Office Tax, which needs to be considered when entities conduct business in offices or workplaces within cities with a population of 300,000 or more.
Contents
The group tax relief system will be introduced for business years beginning after March 31, 2022, replacing the current consolidated tax return system.
Corporate taxpayers that elect to file consolidated tax returns are deemed to elect for the group tax relief system automatically unless they notify the tax office otherwise.
...To read the rest of the article, click on the PDF file below.
Related content
Japan Tax Update: Strengthening of Minimum Tax Rules for High-Income Individuals Starting in 2027
JAPAN TAX BULLETINStarting in 2027, a revised minimum tax regime will apply to certain high-income individuals in Japan. While JPY165 million is used as a calculation threshold, additional tax is only triggered where the minimum tax exceeds the regular income tax liability. The reform is intended to ensure a minimum level of taxation, particularly where a significant portion of income is derived from investment or equity-based sources.
Japan’s Approach to “Paper Companies”
JAPAN TAX BULLETINIn recent years, international tax authorities have intensified scrutiny of cross-border structures involving low-substance entities, commonly referred to as “paper companies.” Japan is no exception and such structures continue to be examined under existing anti-avoidance frameworks, including the “Controlled Foreign Company (CFC) regime and treaty-based anti-abuse rules.
Subscribe to receive our publications
If you are interested in receiving our latest insights, You can sign up to our mailing list.