News By Tag
News By Place
All about Running a Company and Paying Taxes in Japan
International entrepreneurs find doing business in Japan is complex.
For Japan company registration of an LLC, only one director and one shareholder is needed. The minimum share capital is US$1 for Japan business formation and there is no need to travel. A Japanese LLC enjoys the benefits of 58 international double taxation treaties, thus minimizing withholding tax for a Japan business setup. Japan boasts four free zones offering a foreign Japan business setup no custom duties, and flexible labour laws. The four free zones are Nagasaki, Niigata, Okinawa, and Tokyo.
Japan’s corporate tax is a 30% for the first 3 years on corporate profits, thereafter the corporate tax rate is reduced to 25%. Along with the corporate tax, the company must pay two types of local taxes: inhabitant tax from 17.3% to 20.7% and enterprise tax of 7.5%. There are no restrictions on the repatriation of capital. The standard value added tax (VAT) rate is 5%, therefore sales prices can be optimized. Most companies in the country require an annual statutory audit. Healy Consultants (http://www.healyconsultants.com/
Japan’s capital expenditure was USD2.5 trillion in 2012 thus providing business opportunities for multinational services firms through Japan business formation. The country has signed Double taxation avoidance agreements (DTAA) (http://unctad.org/
Mr. Aidan Healy