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Investing in Japan

It is critically important that a client implements a business structure that makes sense from a commercial, financial and tax prespective.

Phase 1 – Design

In establishing a local presence in Japan, it is critically important that a client implements a business structure that makes sense from a commercial, financial and tax perspective. As part of Phase 1, we will "design" a recommended business and corporate structure by considering its form, functions and tax implications.

The deliverable from Phase 1 will be a memo which sets out (including the discussion with a client based on the memo):

  • Recommended business entity and corporate structure a client may adopt.
  • Advantages and disadvantages of operating through each of the business entities and corporate structures with focus on corporate and consumption tax implications.
  • High level tax implication analysis with focus on:
    • Capital policy from the client parent company to a local presence in Japan;
    • Repatriating profits back to the client parent company; and
    • Compliance requirements.
  • Operational advice with focus on:
    • Outline of requirements for incorporation, operating business and exit from Japan;
    • Analysis of direct employment vs. independent contractor;
    • Compensation and benefits and payroll structuring;
    • General human capital management; and
    • Social security requirements.

Phase 2 – Production and assembly

Once you have decided to establish a local presence and have determined which structure best suits your needs and requirements, we will assist with implementing the chosen structure. This can include:

  • Assisting with the various registrations necessary when establishing a business in Japan, including details of all tax related registrations;
  • Advising on the relevant compliance obligations; and
  • Liaising with agents (i.e. registration lawyer,  lawyer).

Grant Thornton’s International Tax professionals can help you implement strategies and structure transactions to enhance your tax savings at home and abroad. Whatever level of overseas activity you pursue, we can create a tailored international tax planning and compliance program.

Health Check (International Tax Advisory)

In an ever-increasing environment of global competition, businesses must now cope with not only the complexity of different global operating environments, but also with global tax, legislative and corporate regulatory requirements.

The right tax planning can increase net benefits for businesses as a whole whilst generating tax savings and reducing compliance problems. In addition, by ensuring compliance with all legislative and corporate regulatory requirements business owners are able to devote more time to running their businesses.

We provide the following services:

  • Tax effective global corporate structuring services
  • Development of efficient strategies for cross-border investment activities
  • On-going international tax advisory services
  • Global tax and regulatory compliance services
  • Updating business owners on changes affecting businesses on a global basis
  • Ensure tax efficient mergers & acquisitions including risk management services
  • Transfer pricing advisory services

The benefits of a “Health check” review are that we will identify potential risks with your global compliance and investigate those risks for you. We will do this by reviewing the following items and reporting and consulting on any issues found:

  • Tax : Information request and confirmation of tax compliance issue etc
  • Corporate Services: Bookkeeping and accounting services, compensation and benefit consultation etc
  • Expatriate Employment & Remuneration Services
  • Employment Law Consultation
  • Transfer Pricing Consulting Service

Grant Thornton’s International Tax professionals can help you implement strategies and structure transactions to enhance your tax savings at home and abroad. Whatever level of overseas activity you pursue, we can create a tailored international tax planning and compliance program.

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