Japanese tax sistem

Japanese taxes consist of national and localtaxes.National taxes are Income tax, Corporate tax, Inheritance tax, Gift tax, Consunption tax, Stamp tax, and Others. Local taxes are Prefectural inhabitant tax, Enterprise tax, Municipal inhabitant tax, Automobile tax, Fix asset tax, and Others.

(1)Corporate income
Taxes on corporate income consist of corporate tax(national tax), corporate inhabitant tax (prefectural and municipal tax) and corporate enterprise tax. While corporate tax and corporate inhabitant tax are not deductible for corporate tax purposes, corporate enterprise tax is deductible when the payment is made. A foreign company setting up a Japanese branch and doing a business is subject to tax on all Japanese source income.

(2)Consumption Tax
Consumption tax is categorized as a value added tax applied to almost every domestic transaction and every import transaction except for financial transactions, capital transactions, medical services, welfare services and educational services. The aggregate consumption tax rate is 8%(from April 1st 2014).

(3)Individual incom tax
A resident is an individual who has a domicile in Japan or an individual who has a residence in Japan for one year or longer. An individual who does not qualify as a resident is classified as a non-resident. Domicile means center of living. Residence means the individual's presence in Japan and does not necessarily mean the center of living.
A resident taxpayer is subject to assessment income tax by filing a tax return. A non-resident's tax liability is usually settled by the withholding of income tax, except on real estate income or captal gains from land transfer,etc.
There are 10 types in this tax. a)Interest income b)Dividend income c)Real estate income d)Business income e)Employment income f)Retirement income g)Capital gain h)Occasional income i)Miscellaneous income j)Forestry income. We need to judge the type of income.

(4)Inheritance Tax
Taxpayer is an heir or legatee who had a domicicile in Japan at the time of the decedent's death.

method of saving money

  • For minimum tax you shoud appropriate expence as much as income.

inserted by FC2 system inserted by FC2 system