Doing Business in Japan Part 3 Submission of Tax Applications for Start-up
When starting business in Japan, foreign subsidiaries (Japanese domestic companies) are required to submit various tax-related documents to tax authorities. Some documents are mandatory, but others are optional, depending on the company’s needs. In this News, we will mention some of the major tax notifications required for start-up.
2.Documents related to corporation tax, local tax, and individual income tax
The following are some major documents for Japanese corporation tax, local tax, and individual income tax related to the establishment of companies.
① Notification of Corporation Establishment
Companies must submit this Notification within two months from the establishment (the date of the company’s registration). Please note that companies need to attach a copy of the articles of incorporation and other relevant documents.
② Application for Approval of Filing a Blue Tax Return
Companies can submit this Application within three months of the establishment or prior to the final date of the first fiscal year, whichever comes first, if they wish to take some preferential tax treatments such as tax loss carry-forwards by filing a blue tax return.
③ Application for Special Provision for Extension of the Due Date for Filing a Final Return Form
Companies can submit this Application by the final date of the fiscal year for which they would like to take this special extension initially if they wish to extend the filing due date because of the schedule of the annual meeting. By submitting this Application, companies can extend the filing due date of final corporation tax returns by one month.
④ Notification of Establishment, etc. of a Salary-Paying Office
Companies must submit this Notification within one month from the date of the establishment.
3.Documents related to consumption tax
The following are some major documents for consumption tax related to the establishment of companies.
①Report on the Selection of Business Proprietor Status for Consumption Tax
A tax-exempt enterprise can become a taxable enterprise by submitting this Report voluntarily. An enterprise which selects to become a taxable enterprise has to submit this Report by the date preceding the first date of the taxable period for which the enterprise intends to become a taxable enterprise (in case of a newly-established enterprise, during the initial taxable period.) Please note that once an enterprise has chosen to become a taxable enterprise, it is in principle required to continue the taxable status for consumption tax for two years.
②Notification of Being Qualified for a Newly Established Corporation for Consumption Tax
A newly established company (whose capital amount is JPY10,000,000 or more on the first date of the fiscal years for which no base period exists) must submit this Notification promptly after the establishment. Please note that in case an enterprise has submitted the “Notification of Corporation Establishment” and stipulated certain matters, the submission of this Notification is not required.
③Report on the Extension of the Due Date for Filing a Consumption Tax Return Form
A company can submit this Report by the final date of the taxable period for which the company intends to apply for the special provision of extension of the due date for filing a final consumption tax return on the condition that the company has got the approval of the special provision of extension for filing final corporation tax returns.
By submitting this Report, companies can extend the filing due date of final consumption tax returns by one month.
In this News, we mentioned the submission of tax applications required for starting business in Japan. As mentioned above, there are several tax-related documents to be submitted to tax offices and municipalities for start-up. Further, in case you apply for special tax treatments or options, you should be careful of the due date of submission of such applications. As for consumption tax, you need to judge the merit of being a taxable enterprise by estimating the future consumption tax payment. We have skilled knowledge and experiences in company establishment services and can offer the best tax planning advice corresponding to your needs. Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us.
National Tax Agency (in English)
Guidelines for Notifications of Corporation Establishment, etc.