Tax Services

In comparison with most other countries, Japan’s tax laws can be complicated, with several different types of taxes due. In Japan, only a “certified tax accountant” can offer tax-related services, here at PKF Japan we are home to a team of Certified Professional Accountants (CPA), Enrolled Agents (EA), and Tax Advisors who are all former members of the “Big 4” consultancies. As a one-stop taxation support service for Japanese corporations and branches, we provide our clients with a quality service that is comparable to the other major firms but at a reasonable price.

Tax Advisory Services

We provide a range of tax-related advisory services that meet the needs of our clients, commensurate to their size and the current stage of their business. Our services are not limited to compliance with Japan’s domestic tax laws, as we also provide advisory services for international taxation. The scope of our international taxation services extends across several different areas, including thin capitalization taxation, anti-tax haven measures, transfer pricing taxation, foreign dividend exemption systems, and tax treaties.

  • Domestic Taxation
    • PKF Japan offers an extensive domestic taxation service to our wide range of clients. Japanese corporations that are expanding overseas will make use of our domestic tax services, as well as foreign companies operating in Japan. Our skills and experience allow us to deliver these services in a timely and flexible manner.

  • International Taxation
    • With the increase in cross-border transactions between enterprises, the tax laws relating to these transactions become more onerous and complicated. We provide international tax advisory services that address our clients’ concerns, including tax treaties, thin capitalization taxation (relating to corporate debt), anti-tax haven, or as it is also known as Controlled Foreign Company (CFC) measures and foreign tax credit systems.

  • Restructuring
    • Recent years have seen the introduction of tax reforms that impact companies that are undergoing restructuring. We offer tax advisory services for a whole range of specific events, including corporate mergers and demergers, share exchanges, share transfers, payments-in-kind, asset purchases, and in-kind distributions.

  • Transfer Pricing Taxation
    • Undertaking any business activities overseas without taking the necessary transfer pricing tax measures may expose you to the risk of incurring the expense of unexpected and additional taxation at a later date. We have an established partnership with an accounting and tax firm that specializes in transfer pricing services to provide our customers with the best possible advice when it comes to transfer pricing and associated taxation.

Tax Return Preparation Services

In Japan, tax returns must be prepared and filed at the tax office within two months of the closing month. These tax returns require the inclusion of several supporting documents as attachments, starting with the year-end financial statements. We will provide you with the necessary services to meet the tax return requirements, including preparing and filing all the required tax returns and submitting the notifications on tax treaties based on the current tax laws. We can prepare tax returns for you for all your relevant requirements, including for the following taxes:

  • Corporate tax
  • Corporate inhabitant tax
  • Enterprise tax
  • Consumption tax
  • Depreciable assets tax.

Tax Agent and Tax Audit Supervisory Services

We are currently working as a tax agent for many foreign companies here in Japan. Once a company in Japan reports a profit, the tax office will conduct a tax audit every few years, the periodicity being dependent on the size of the company.

In addition to preparing and filing your tax returns, we can also offer you our audit support service. This service involves helping you step-by-step when your business is required to be audited ― from the preparations needed before the audit through to support during the actual audit itself. Many of our tax accountants have extensive experience of undertaking and receiving tax audits, and they know precisely what the auditors require. They will be on hand to coordinate with the tax auditor on your behalf and help you complete the audit successfully. Also, we can consult on your behalf directly with the National Tax Agency and your designated tax office should you have any queries or concerns about any tax issues or policies.

Misunderstanding and errors can happen to anyone. Even in Japan, there have been cases where taxpayers were required to pay taxes that they did not need to pay, including when the taxpayer had previously paid the appropriate amount of tax. Here at PKF Japan, our team of experienced tax accountants is ready and able to act as your company’s agent during tax audits to identify and resolve any misunderstanding or errors before they come into effect.

What is a tax audit?
A tax audit is when an employee from either the National Tax Bureau or the local tax office arrives to inspect your tax filings to check that the information provided is complete and correct. There are two main types of tax audits, a voluntary tax audit, and a tax investigation.

A tax examiner will conduct a voluntary tax audit with the consent of the taxpayer, and the tax examiner may want to question the taxpayer on issues related to tax laws, including the Act on General Rules for National Taxes, the Consumption Tax Act, and the Income Tax Act. Although defined as being voluntary, any taxpayers who receive a notification for such a tax audit is obliged to consent to the audit. Any refusal to allow the tax audit without an acceptable reason will result in penalization of the taxpayer.

A tax investigation, on the other hand, will be conducted by the National Tax Agency’s Criminal Investigation Department following the issuance of a court order under the National Tax Violations Contract Act.

Tax Opinion Letter Drafting Services

We offer our clients the option to consult with the National Tax Agency and local tax offices on their behalf and in advance regarding their tax issues, and we assist our clients in defining their tax policies. From consulting with tax accountant associations to seeking advice from tax accountants who have worked as part of the National Tax Agency, we studiously examine our clients’ issues from many different perspectives to obtain a broad view of opinion. If we are unable to get a clear answer from the tax office, or a definitive answer that would serve as a reference should any disagreements with the tax office about tax policies arise in the future, we will prepare a tax opinion letter for our clients. Some examples of the topics where we have prepared tax opinion letters for our clients include:

  • Whether or not tax the eligibility requirements during a restructuring have been met
  • The classification of a client as a Japanese resident or non-resident
  • General anti-tax avoidance rules.

Tax Agent Services

A tax agent is a person or entity that handles all the matters related to taxation on behalf of a taxpayer who does not hold an address (either home or office) within Japan. Our firm offers the following tax agent services:

Tax Agent
You can appoint a tax agent from our firm for cases such as when a foreign corporation closes its Japanese branch and is unable to file any due tax return by the day before the branch closing date. Or if an overseas-bound seconded employee is unable to submit their tax return by the day before their departure from the country. Even if you do not have a domestic office in Japan if any transactions such as the transfer of taxable assets occur domestically and your company’s taxable sales in the previous two calendar years (or fiscal years) exceed 10 million Japan yen, then you would still need to pay consumption taxes in Japan. In all these cases, you would need to designate a tax agent to file the taxes on your behalf.

Foreign Language Support
Our firm is home to a highly experienced team of staff who can communicate with you in both English and Chinese (Mandarin and Cantonese). Following our link up into the global PKF International accountancy network, we now have expanded our operations to include over 400 offices across 150 countries, allowing us to tap into this network to provide you with even better-localized support. Any clients who cannot communicate in Japanese do not need to worry about any language barrier as we can always find a way to work together using a common language, providing the services that you need.

Tax Payment Proxy
There are several circumstances where foreign nationals are obliged to pay taxes in Japan, even if they do not have any domestic Permanent Establishment (PE). Taxes that you may be required to pay to the Japanese tax office include consumption tax and fixed assets tax. We can prepare and submit your tax returns to the tax office on your behalf and facilitate the payment of any taxes due. Conversely, we can also request on your behalf any tax refunds that may be due as a refund request proxy.

Income Tax Filing
Japan’s Income Tax Act categorizes all non-residents who earn any income in Japan as income taxpayers once this income exceeds a set limit. For example, income earned from the leasing of real estate in Japan, which exceeds a defined amount, will require the lessor to file an annual tax return to declare this income.

Preliminary interviews for TAX Services

Before we offer our services, our team at PKF JAPAN will typically schedule an initial consultation with potential clients to ensure that we fully understand their business, identify the most appropriate options for their individual needs, and allow us to provide an accurate quotation. We may ask you for copies of the following documents to help this process:

  • A set of financial statements and tax return documents for the last fiscal year (always required).
  • An overview of your business activities (such as import/export, wholesale/resale, commission services), and your sale and distribution channels. If there are several business activities, we would kindly ask for details of each. We may also ask you to provide support documentation for your business activities, such as a link to your company website.
  • The structure of your company’s business organization: for example, if it a Japanese based subsidiary, a branch office located in Japan, or an individual investment.
  • Details of your paid-in capital along with a copy of the shareholder list and the corresponding number of shares held by each shareholder.
  • The date of your fiscal year-end and the establishment of your company or branch office.
  • Your communications and reporting language preferences, including if you require the various deliverables (such as financial statements) translated into English along with any requirements for general discussions to be carried out using English.
  • The number of employees that your company currently employs, including all directors, part-time, and non-regular staff.
  • The preferred date for when you would like us to start supplying you with our services.
  • Any requirements you may have for us to use any specific accounting software application.
  • Any requirements for us to use a particular chart of accounts or if you would be happy for us to use a standard chart of accounts.
  • Any requirements for us to use a specific form for deliverables such as reporting packages or if you would be happy for us to use the general format generated by our standard accounting software application.
  • An idea of the current average number of journal entries (lines) per month based on your current books. You may alternatively provide us with a copy of your journal ledger or general ledger if you prefer.
  • The approximate value for your current sales and an idea of how many sales invoices you typically issue each month.
  • If your company has an inventory of the fixed assets, then a copy of the inventory control form would be beneficial.
  • Please let us know if you have a specific due date for your monthly reporting and the dates when you would require us to deliver our materials.
  • Confirmation as to whether or not your company is a consumption tax filer.
  • Any requirements for us to comply with additional accounting standards such as IFRS or US GAAP, along with any other adjustment you would require with regards to your financial statements.
  • If you do have a current service agreement with a different accounting firm; then we would be interested in knowing the reasons why you are considering a change in accounting firms so we can ensure we fulfill your needs.
  • Finally please let us know if you have any other specific requests regarding our accounting and tax services, we are always happy to help as best as we are able.

Service Features

Our TAX services boast the following four major features:

An ability to provide services to foreign-affiliated companies regardless of their size

PKF JAPAN is home to a core team of certified professionals, including Certified Professional Accountants (CPA), Enrolled Agents (EA), and Tax Advisors who are all certified in Japan, and who have experience of working for the other major accounting firms. We are committed to providing accounting support to companies from across the world when they seek to expand their business into Japan ― either as companies or branches. We provide services to a wide range of clients from multiple industry sectors, from international companies listed overseas to those operating in the global aviation industry.

An ability to provide fast, agile and effective support

PKF JAPAN’s team of specialized consultants, including our certified accountants and tax accountants, are light on their feet. We are a fast and agile service provider, reacting to our clients’ needs whenever required, and delivering effective solutions. We recognize that it is essential for our clients that we swiftly complete our work when it comes to selecting tax principles, as well as delivering our accounting services to meet our clients’ taxation needs. Even when providing accounting advice, we guarantee that we will provide all our clients with prompt and decisive action. We have put together an integrated team of Certified Professional Accountants (CPA), Enrolled Agents (EA), Tax Advisors, Lawyers, Certified Social Insurance and Labor Consultants, Legal Advisors, Business and IT Support Staff, Bookkeepers and Administrative Assistants who, between them, can provide the services that you require.

An ability to address your concerns regarding different tax issues

PKF JAPAN’s team includes qualified and experienced tax accountants who are familiar with international tax affairs. In today’s global marketplace, international corporate activities are not only affected by Japan’s tax laws but also by the laws of other countries where business transactions take place. Also, for diversified corporate entities, it is now necessary to consider tax restructuring options and consolidated tax payments as part of the tax planning activities across the entire group. We provide expert advice and tax consultation services, providing you with the right help for your tax affairs and which is consummate with the diverse nature of modern business activities.

An ability to offer multilingual services and support

Here at PKF JAPAN, we employ bilingual staff who are proficient in the major languages for international business, including English and Chinese. Over recent years we have seen an increase in both foreign business expansions into Japan and the overseas business expansions of Japanese enterprises. In such an evolving business environment, we are proud to be able to offer our tax services in both English and Chinese to enhance and expand the support that we can provide to our clients.

Meet the Partners

Akinari-Tsuchiya

Akinari Tsuchiya

PKF Shiodome Partners

Senior Partner

Jun-Kurozumi

Jun Kurozumi

PKF Shiodome Partners

Partner

Yuya-Hasegawa

Yuya Hasegawa

PKF Shiodome Partners

Senior Partner

Ryuta-Sato

Ryuta Sato

PKF Shiodome Partners

Senior Partner

Shuske-Hirano

Shusuke Hirano

PKF Shiodome Partners

Senior Partner

Ryota-Matsuhashi

Ryota Matsuhashi

PKF Shiodome Partners

Executive Officer

Yusuke-Maekawa

Yusuke Maekawa

PKF Shiodome Partners

Executive Officer

Mitsuaki-Kanamori

Mitsuaki Kanamori

PKF Shiodome Partners

Director

Koichi-Sato

Koichi Sato

PKF Shiodome Partners

Senior Advisor

Hirofumi-Miyake

Hirofumi Miyake

PKF Shiodome Partners

Senior Manager

Ryo-Mitsui

Ryo Mitsui

PKF Shiodome Partners

Manager

Naoki-Kametani

Naoki Kametani

PKF Shiodome Partners

Manager

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