Practice Area

Japan Tax & Legal Advisory

Licensed 税理士 and 司法書士 advising foreign companies on Japanese tax, data protection, employment law, and intellectual property.

Services subject to engagement scope and Aplash terms.

Our Practice Areas

Japan Tax Advisory

We advise foreign companies on the full range of Japanese tax obligations — from corporate income tax structuring and JCT registration to transfer pricing documentation and double-taxation treaty analysis. Our licensed 税理士 work directly with your finance team to ensure compliance at every stage of Japan operations.

Key Services
  • Corporate income tax return preparation and filing
  • Japan Consumption Tax (JCT) registration and quarterly filing
  • Transfer pricing documentation (OECD BEPS-compliant)
  • Double-taxation treaty analysis and withholding tax advisory
  • Tax audit representation before the NTA

Japan Legal Services

Our legal practice covers the commercial and regulatory obligations that arise when foreign companies operate in Japan. We structure employment contracts under the Labour Standards Act, advise on APPI data protection obligations, register intellectual property with the Japan Patent Office, and review commercial agreements for Japan-specific risk.

Key Services
  • Japanese employment contract drafting and review
  • APPI data protection compliance audit
  • Corporate trademark and patent registration with JPO
  • Commercial contract translation and Japan-law review
  • Dispute resolution and arbitration advisory

Specialist Services We Provide

Our licensed tax accountants (税理士) and judicial scriveners (司法書士) cover the full spectrum of Japan compliance.

Transfer Pricing

OECD-compliant documentation for intercompany transactions. Required for related-party dealings over JPY 5 billion.

Covers BEPS Action 13 Master File and Local File.

Corporate Tax Returns

Annual corporate income tax return (法人税申告書) filing with the NTA. Covers national and local taxes.

Includes tax provision calculation for IFRS/GAAP consolidation.

APPI Compliance

Full audit of personal data handling against Japan's APPI 2022 revision. Includes privacy policy drafting.

Cross-border data transfer rules and consent mechanism review.

Employment Contracts

Japanese-law compliant contracts for local hires. Covers work rules (就業規則), non-competes, and IP assignment.

Labour Standards Act and 2024 overtime reform compliance.

IP Registration

Trademark, patent, and utility model registration with the Japan Patent Office (特許庁). Covers Nice Classification strategy.

Priority claim coordination for Madrid Protocol applications.

Contract Review

Japanese-language contract review and English advisory for commercial agreements, NDAs, and joint ventures.

Identifies Japan-specific risk clauses including governing law and jurisdiction.

Tax Audit Support

Representation before the NTA in tax audits (税務調査). Covers field audits, document production, and negotiation.

Includes penalty mitigation strategy and voluntary disclosure analysis.

Our tax accountants (税理士) hold active registration with the Japan Federation of Certified Public Tax Accountants.

Who This Is For

Our tax and legal services are designed for foreign-controlled entities at every stage of Japan operations.

How We Engage

A structured, transparent engagement process designed for foreign-controlled businesses.

Initial Assessment

We review your Japan business activities, entity structure, and existing compliance posture.

Gap Analysis

Our team identifies compliance gaps under Japanese tax law, APPI, employment law, and sector-specific regulations.

Engagement Proposal

A fixed-scope proposal covering all required services — no ambiguity on deliverables or pricing.

Delivery & Filing

Licensed advisors prepare all filings, contracts, and registrations. You review and approve before submission.

Ongoing Compliance

Annual retainer option for recurring tax filings, contract reviews, and regulatory monitoring.

Governed by Japanese Law

All services are delivered in compliance with Japanese tax law and commercial regulations. Our advisors are licensed by relevant Japanese professional bodies.

🇯🇵法人税法 (Corporation Tax Act) · 消費税法 (Consumption Tax Act) · 労働基準法 (Labour Standards Act) · 個人情報保護法 APPI
🌐OECD BEPS Framework · Transfer Pricing Guidelines · Madrid Protocol (IP) · APEC Cross-Border Privacy Rules

Japan Corporate Tax Structure

Foreign companies operating in Japan face a layered tax structure. Understanding the effective rate and applicable regimes is essential before structuring your entity.

23.2%Corporate Income Tax

National corporate income tax (法人税) levied on taxable income. Rate applies to corporations with stated capital exceeding JPY 100M.

≈ 4.4%Local Inhabitant Tax

Prefectural and municipal inhabitant taxes assessed as a percentage of corporate income tax owed. Rates vary by locality.

≈ 2.1%Enterprise Tax

Prefectural enterprise tax (事業税) based on income. Large corporations also pay an additional value-added and capital component.

10%Japan Consumption Tax (JCT)

Indirect tax on domestic supply of goods and services. Reduced rate of 8% applies to food and beverages. Mandatory registration when Japan sales exceed JPY 10M.

20.42%Withholding Tax

Applied to dividends, interest, royalties, and service fees paid to non-residents. Reduced or eliminated under Japan's 70+ tax treaties.

Effective Combined Rate≈ 29.74%

For large corporations in Tokyo. Reduced to ≈ 23% for SMEs on income up to JPY 8M.

Frequently Asked Questions

Yes, if your Japan-sourced revenue exceeds JPY 10,000,000 in the base period. Since the 2023 invoice system (インボイス制度) took effect, JCT registration has also become commercially important for B2B sellers — buyers can only claim input tax credits from registered suppliers.

The 2022 APPI revision introduced criminal penalties of up to JPY 1,000,000 for individuals and JPY 100,000,000 for organisations, plus administrative enforcement by the Personal Information Protection Commission (PPC). Reputational exposure from mandatory breach notifications is a significant additional risk.

A foreign company with a permanent establishment (PE) in Japan is subject to corporate income tax on Japan-source income and must file an annual return. The definition of PE includes branch offices, construction sites, and in some cases dependent agents. We advise on PE risk analysis and treaty relief applications.

Applications to the Japan Patent Office (特許庁) typically take 10–14 months from filing to registration under standard examination. Accelerated examination (早期審査) is available in certain circumstances and can reduce this to 2–3 months.

Transfer pricing documentation substantiates that intercompany transactions between related parties are conducted at arm’s length prices. Under Japan’s BEPS Action 13 implementation, a Master File is required for groups with JPY 100 billion or more in consolidated revenue; Local File documentation is required for transactions exceeding JPY 5 billion with a single related party.

Yes. Any individual hired as an employee in Japan — regardless of where the employer is incorporated — is subject to the Labour Standards Act (労働基準法). Written employment contracts specifying terms of employment are mandatory. Work rules (就業規則) become required when headcount reaches 10.

Our integrated ecosystem enables us to provide world-class corporate services efficiently

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